Stocks extend gaining streak for second day

Extending the gaining streak for the second consecutive day, Dhaka stocks closed higher on Thursday as bargain hunters chased down sector-specific issues that were being traded at a lucrative price level following the early week’s massive fall.

The DSEX, the broad index of the Dhaka Stock Exchange (DSE), advanced 12.64 points or 0.20 per cent to settle at 6,265 against 6,253 points in the previous trading session.

Among other indices, the DS30, the blue-chip index, rose 8.25 points or 0.37 per cent to 2,199, and the DSES, the Shariah-based index, gained 7.33 points or 0.54 per cent to close at 1,364.

Meanwhile, the Dhaka bourse observed a rise in participation with turnover surging by 17.8 per cent to Tk 552 crore against Tk 468 crore in the previous session.

The market saw a mixed performance with investors being active on both sides of the trading fence, but the buyers outnumbered the sellers at the end of the trading session.

Investors reacted positively to the regulator’s recent attempt to withdraw floor price restrictions on block transactions which increased the liquidation opportunities for large investors, said EBL Securities, a stockbroker, in its daily market review.

The price appreciation of some large-cap issues contributed significantly to helping the core index remain afloat, it added.

The IT sector topped the turnover chart with a contribution of 19.7 per cent to the total turnover, followed by pharma & chemicals (18.2 per cent) and paper (9.5 per cent) sectors.

Most of the sectors displayed positive returns on the trading floor of the premier bourse. Of them, the jute sector performed the best with a gain of 6.5 per cent, followed by life insurance (2.5 per cent) and cement (2.4 per cent). Out of the 390 issues traded, 48 advanced, 41 declined, and 301 did not see any price movement on the DSE trading floor. The port city bourse, Chittagong Stock Exchange (CSE), also closed higher with its two major indices – the selected indices (CSCX), and the all share price index (CASPI) – advancing by 11.4 points and 18.1 points respectively.