Dhaka stocks advanced for the third trading session on Wednesday with the key index of Dhaka Stock Exchange, DSEX, hitting fresh 16-month high as investors continued with optimistic purchasing.
Benchmark DSEX rose another 0.51 per cent or 25.19 points, to increase at 4,871.28 points, the highest after 4,873.96 points on August 5, 2015. DSEX has increased 450 points since June 1, 2016.
The market continued to surge as investors continued with optimistic share purchasing in an expectation of further rise in share prices, stockbrokers said.
In absence of political uncertainty, relaxation of Bangladesh Bank’s policy with a view to allow banks to adjust their capital market over-exposure without any share sales, downward interest rate on bank deposit and injection of fresh funds were the major reasons behind the recent upward market movement, they said.
Apart from these, growing participation on the trading floor also supported the market to keep rising, stockbrokers said.
On the sectoral front, non-bank financial institutions and banks got investors’ additional attraction for the second trading session after some profit booking share sales in last week.
Average prices of NBFIs’ and banks’ shares rose 1.29 per cent and 0.51 per cent respectively on the day.
Turnover of the bourse increased to Tk 864.24 crore compared with that of Tk 795.36 crore in the previous trading session.
Of the 325 companies and mutual funds traded, 144 advanced, 132 declined and 49 remained unchanged.
The blue-chip index of the bourse, DS30, finished at 1,793.11 points, adding 0.42 per cent or 7.64 points.
DSES, the Shariah index, went up 0.53 per cent or 6.10 points, to close at 1,158.29 points on Wednesday.
‘Market remained very bullish, generating further return while broad index DSEX added 25.2 points more to close at 4,871.3 points,’ said IDLC Investments in its market analysis.
‘Blue chip index DS30 and Shariah compliant index DSES were also positive, settling at 1,793.1 and 1,158.3 points, respectively,’ it said.
‘Market’s bull-run continued amidst increased participation,’ said LankaBangla Securities in its market report.
‘The broad index DSEX has touched the critical resistance level of 4,870 points on Wednesday,’ it said.
‘Momentum indicator, RSI of DSEX is currently staying at 81.2 indicating an overbought market and an impending corrective pullback in price,’ it said.
‘However, Bangladeshi shares edged up higher yet again on the day creating another new high for 2016,’ stockbrokers said.
Olympic Industries led the turnover chart with its shares worth Tk 46.04 crore changing hands.
IFAD Autos, Ratanpur Steel Re-Rolling Mills, Argon Denims, Quasem Drycells, Bangladesh Building Systems, Fortune Shoes, Shasha Denims, Square Pharmaceuticals and Olympic Accessories were other turnover leaders.
Dragon Sweater and Spinning gained the most with a 9.58 per cent rise in its share prices, while Standard Insurance was the worst loser, shedding 9.04 per cent.
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