Stocks rally for second day
Stocks gained 2.78 percent yesterday, the highest this month, owing to institutional investors' increasing participation in the market.
The rally continued for a second consecutive day as DGEN, the benchmark general index of the Dhaka Stock Exchange, gained 116.91 points to close the day at 4,318.79 points.
The opening 30 minutes of the day saw a rise of 110 points, and the momentum continued until the close of trade.
“Institutional investors, including banks, which publicised their intent to make fresh investments, followed up and bought shares, while some corporate dividend announcements, too, improved investor sentiment,” said Ahmed Rashid, senior vice president of the DSE.
Rashid added that the market is on its way to stability and is hopeful of a boost to small investors' confidence.
“New commitments from banking institutions reassured the investors that the liquidity would remain aplenty during the forthcoming period,” said LankaBangla Securities in its market analysis.
Latest policy decision by the government regarding the Padma bridge project also added to investors' positive outlook, it said.
“The rally went on for a second consecutive session, with improved turnover as well. Expectation of the rally persuaded investors to make fresh investments,” said IDLC Investments in its market commentary.
Turnover stood at Tk 289 crore, a 38.87 percent rise from the previous day.
A total of 0.89 lakh trades were executed on the premier bourse, with 6.58 crore shares and mutual fund units changing hands.
Among the major sectors, non-life insurance gained the most at 4.99 percent.
Non-bank financial institutions, power and textile were the other noteworthy movers, having risen by 3.97 percent, 2.66 percent and 2.37 percent respectively.
Of the 268 issues that traded on the DSE, 247 gained, 14 declined and seven remained unchanged.
Grameenphone was the top traded stock of the day, recording transactions of 6.85 lakh shares worth Tk 14.24 crore.
Beximco and Bangladesh Submarine Cable Company were the next popular stocks, registering figures of Tk 13.79 crore and Tk 12.64 crore respectively.
The biggest gainer of the day was Dhaka Insurance with its 9.98 percent rise, while Beximco lost the most, at 12.18 percent.
The Daily Star/Bangladesh/ 25th July 2012