Strong overseas investment data support stocks recovery

Staff Correspondent | Published: 23:40, Nov 02,2016

 
 

Dhaka stocks recovered significantly on Wednesday mainly due to investors’ improved confidence over the market following media reports on growing foreign participation in the country’s capital market.
The key index of Dhaka Stock Exchange, DSEX, finished at 4,633.18 points, adding 0.79 per cent or 36.32 points after inching up by 4 points in last trading session. The market during a five-day bearish-run had lost 101 points.
Stockbrokers said that the investors’ sentiment turned positive strongly on Wednesday mainly due to media reports on improved overseas investments data in October.
Net foreign investment in DSE increased 51 per cent or Tk 72 crore in October this year against that of the previous month, a DSE data released on Tuesday evening showed.
Net overseas investment was Tk 213 crore in October while the amount was Tk 141 crore in September.
Riding on investors’ optimism, the DSEX started positive and sustained the vibe till the end of the session with rise in share prices of more than two-third traded scrips, stockbrokers said.
On the other hand, earnings declaration-centric portfolio adjustment moves also declined gradually as most of the listed companies have already completed their announcements, they said.
Turnover of the bourse also increased to Tk 457.04 crore compared with that of Tk 376.96 crore in the previous trading session.
Of the 324 companies and mutual funds traded, 218 advanced, 67 declined and 39 remained unchanged.
‘After moving sharply higher in early trading on Wednesday, benchmark index ended the day above 4,600-points mark with all the major sectors having renewed buying interest,’ said LankaBangla Securities in its market report.
‘Investors showed optimism on Wednesday and appeared to focus on the market fundamentals,’ it said.
‘Positive sentiment was also generated by significant rise in foreign fund in capital market,’ the stockbroker said.
‘Positive momentum prevailed throughout the trading session while DSEX gained 36.3 points in its fleet to close at 4,633.2 points,’ said IDLC Investments in its market commentary.
‘Activities improved significantly to grow total turnover by 21.20 per cent from that of Tuesday to Tk 4.6 billion,’ it said.
DS30, the blue-chip index of the bourse, increased by 0.51 per cent or 8.88 points, to close at 1,739.91 points.
The Shariah index, DSES, finished at 1,108.05 points, adding 0.49 per cent or 5.46 points.
BRAC Bank led the turnover chart with its shares worth Tk 21.43 crore changing hands.
Doreen Power Generations and Distributions, Orion Infusions, Confidence Cement, Argon Denims, Mithun Knitting, MJL Bangladesh, Peninsula Chittagong, Bangladesh Building Systems and Lafarge Surma Cement were other turnover leaders.
Peninsula Chittagong gained the most with a 9.13 per cent rise in its share price, while Shaympur Sugar Mills was the worst loser, shedding 8.33 per cent. 

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

images

 

Advertisement

images