Stocks gain for second straight day | The Daily Star
12:00 AM, March 16, 2018 / LAST MODIFIED: 01:06 AM, March 16, 2018

Stocks gain for second straight day

Dhaka stocks gained 1.51 percent yesterday, riding on bank shares that surged upon expectations of positive corporate declarations and the regulator's move to stabilise the market.  

DSEX, the benchmark index of Dhaka Stock Exchange, rose 85.54 points -- the second consecutive session to post a gain after a four-day losing streak -- to close the week at 5,720.59 points.

The premier bourse observed a wining session as investors opted to take fresh positions in undervalued stocks, said EBL Securities in its daily market analysis.

“Strong buying pressure on stocks mainly from the banking sector kept the index moving upward,” it added.

For instance, Mercantile Bank's shares soared 8.54 percent and City Bank's 8.49 percent. Overall, the banking sector gained 3.2 percent.

The Bangladesh Securities and Exchange Commission's initiative to create scope for institutional investors to invest more raised the market's confidence, said a high official of a merchant bank requesting not to be named.

The regulator urged the government to take initiative on three broad issues -- redefining of banks' capital market exposure, extending the timeframe for lowering banks' loan-deposit ratio and increasing the investment capacity of Investment Corporation of Bangladesh.

Turnover, an important indicator of the market's vigour, was 51.1 percent higher than the previous day at Tk 338.59 crore.

Among the major sectors, non-bank financial institutions gained 1.8 percent, non-life insurance 1.3 percent and engineering 1.2 percent. Paper and printing fell 0.5 percent.

Of the 336 issues that traded on the premier bourse, 275 advanced and 43 declined, while 18 remained unchanged.

Brac Bank topped the turnover chart with its transactions of 21.46 lakh shares worth Tk 19 crore. IFAD Autos, Queen South Textile Mills, Monno Ceramics and Mercantile Bank rounded off the top five spots.

Islamic Finance & Investments was the day's best performer, posting a gain of 9.70 percent, upon news that its board has recommended 14.50 percent cash dividend for the year that ended on December 31, 2017.

It was followed by CAPM BDBL Mutual Fund 01, CAPM IBBL Islamic Mutual Fund, SEML IBBL Shariah Fund and Mercantile Bank. First Finance was the day's biggest loser, shedding 3.73 percent, followed by Phoenix Finance, NCCBL Mutual Fund-1, Central Insurance Company and Agrani Insurance.

Over at the port city, its benchmark index, CSCX, also gained: 140.88 points or 1.3 percent to finish the day at 10,661.35 points.

Gainers beat losers as 164 advanced and 36 declined, while 13 finished unchanged on the Chittagong Stock Exchange.

The port city bourse traded 62.36 lakh shares and mutual fund units worth Tk 20.42 crore.

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