FE Report

Stocks closed higher for the second running session Thursday on the bourses---Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) with turnover hitting 5-month high as investors rushed to take fresh position amid optimism.

The General Index of the DSE---DGEN surged 46.87 points or 1.07 per cent to close at 4,396.84 points as the market passed the day on gaining spree after previous session's recovery.

The DSE Broad Index (DSEX) ended at 4,304.97 points, after gaining 51.51 points or 1.21 per cent. The DSE-30 Index (DS30) also gained 16.70 points or 1.08 per cent to close at 1,551.97.

The turnover on the premier bourse-DSE crossed Tk 5.50 billion mark for the first time in 2013 and stood at Tk 5.52 billion, also 14.52 per cent higher from previous session. It was also 5-month highest turnover since October 14, 2012 when it was recorded Tk 6.91 billion.

"The trading session ended highest turnover in 2013 as investors rushed to take exposure in equities," commented LankaBangla Securities, in its regular market analysis.

"High turnover indicates increased participation of both individual and institutional investors," the stock broker added.

"Week ended over continuation of the ongoing 'Optimism'. DGEN climbed on a 3 months' high after November 5, last year. Ongoing uptrend, which got its rhythm from last week of January 2013, supported by continuous moderated turnover to achieve investors' confidence, despite political unrest," commented IDLC Investments, in its regular market analysis.

Turnover crossed Tk 5.50 level for the first time in 2013 and broke a 5-month high since October 14, 2012. While, lower valuation level and upcoming corporate declarations created scrips base movements, investors were more cautious than before to put their investment in stocks, it added.

"Market seems to be moving smoothly upwards despite severe uncertainty of political unrest. Investor participation has been increased a lot consequently attracting more funds improving liquidity," stated Zenith Investments.

Some scrips gained heavily resulting in good outlook of specific sectors. Textile sector showed dazzling performance. Textiles once again became the top turnover holder with 1.16 billion. Bullishness of textiles sector remained intact as 20 scrips from this sector gained handsomely.

Fuel and power sector closely followed it with Tk 876.7 million. On the other hand in case of engineering sector, all of its scrips end up gaining, although turnover wasn't that impressive.

Based on United Airway's top performance, travel and leisure sector showed impressive growth. Moreover, it became the third highest turnover holder. Mutual funds suffered a bit correction on the day.

Of the 275 issues traded on the premier bourse, 229 advanced, 29 declined and 17 remained unchanged.

A total of 0.138 million trades were executed in day's trading with 142.17 million shares and mutual fund units of trading volume.

The market capitalisation on the premier bourse stood at Tk 2,479.70 billion against Tk 2,459.70 billion in the previous session.

United Airways topped the turnover chart with shares worth Tk 455.86 million changing hands. RN Spinning, Summit Purbanchol Power and Unique Hotel and Resorts were the day's next popular stocks.

Safko Spinning was the day's highest gainer posting a rise of 9.71 per cent while First Prime Finance Mutual Fund was the worst loser, slumping by 4.40 per cent.

The Chittagong Stock Exchange (CSE) also closed higher with the Selective Categories Index of the CSE gained 111.85 points to close at 8,575.59.

Gainers beat losers 158 to 27 with 17 issues remaining unchanged on the port city bourse with 15.49 million shares and mutual fund units were traded, generating Tk 579.22 million in turnover.