Economic Reporter :
Stock market made a strong u-turn on Tuesday, with making the largest single-day surge in the broader index in 12 months on the positive news about coordinated effort to help strengthen the country’s capital market.
DSEX – the major index of the Dhaka Stock Exchange (DSE) – surged by 2.42 percent or over 100 points to close at 4272.17, which was the largest one-day gain in the broader index since May, 2015.
The blue-chip DS30 closed over 45.26 points higher at 1644.50 and the Shariah DSES ended 24 points up at 1044.08.
The all share price index of Chittagong Stock Exchange (CSE)- CASPI- also followed the DSEX with making a phenomenal 307.95 points gain to finish the day at 13128.91.
The market had been plunging for days due mainly to lower activities when all the indices at Dhaka and Chittagong stock exchanges closed most of the sessions in red.
The broader indices at the country’s twin bourses, however, return to green zone on Tuesday, with maintaining bullish trend throughout the session. A good number of buyers were active for making profit by booking shares of the companies, the prices of which already neared their bottom on the recent wave of price fall.
Market analysts said the stock got the boost from the Bangladesh Bank’s move to help banks adjust their capital market exposure. There was also news that the Bangladesh Securities and Exchange Commission (BSEC) along with the central bank and the stock market authorities would take a coordinated effort to revitalise the capital market.
The news influenced the market sentiment positively till the end of the session. Resultantly, most of the issues traded finished higher. Out of 316 traded issues, 263 gained when only 29 closed lower at DSE. At CSE, 192 securities advanced against 33 losing scrips.
The active trading also boosted the daily trade volume significantly, but the trade value declined as the trading was largely around small and medium cap securities.
The daily trade volume at DSE rose by 24.44 percent to 12.48 crore shares from Monday’s 10 crore shares, but the value fell by 12.0 percent to Taka 405 crore from Taka 461 crore of the previous session.
At CSE, the transaction remained almost static as over 1 crore shares of Taka 23.19 crore changed hands against 1.01 crore shares of Taka 24.49 crore of the previous session.
All the major sectors including bank, cement, fuel and power, NBFI and pharmaceuticals advanced on the day.
Eastern Cable, Hakkani Pulp, Fekdil, Legacy Foot and HR Textile were the day’s top five gaining securities when the major losing issues were BD Welding, SIBL, ISN Limited, Agrani Insurance and National Life.
The most active issues were MJLBD, Keya Cosmetic, BSRM Limited, Lind BD and UPGDCL.
