Stocks break losing spell

Stocks returned to the black yesterday breaking a three-day losing streak, backed by multinational and power companies' rally.

DSEX, the benchmark index of Dhaka Stock Exchange, rose 38.52 points or 0.85 percent finishing the day at 4,565.24 points.

After continuous sell-offs in the last few sessions, investors recovered some early losses as they showed buying appetite on fundamental stocks, LankaBangla Securities said.

“Investors might have reacted positively to the Bangladesh economy outlook of HSBC,” the stockbroker said.

The HSBC in a report said it is time to focus on Bangladesh's economic fundamentals and Bangladesh is best placed as compared to Vietnam and Sri Lanka, as political tensions ease.

IDLC Investments said the market bounced back riding on investors' expectation that the worst has passed. “The year-on-year export growth in fiscal 2014-15 created a respectable scenario in investors' mindset.”

Meanwhile, the deposit rate fell 6.99 percent, a four-year low, in May, indicating equity investment to be more attractive, the merchant bank said.

Turnover, an important indicator of the market, also rose 14.7 percent to stand at Tk 485.42 crore on transactions of 12.37 crore shares and mutual fund units.

Of the issues that traded on the premier bourse, 205 advanced, 68 declined and 48 securities finished the day unchanged.

Beximco dominated the turnover chart with 64.63 lakh shares worth Tk 22.1 crore changing hands, followed by United Airways, ACI, Olympic Accessories and Beximco Pharma.

Almost all the major sectors rose in market capitalisation with mutual funds gaining 1.65 percent, followed by pharma 1.64 percent, cement 0.47 percent and banks 0.14 percent. Only the telecom sector lost 0.23 percent.

First Bangladesh Fixed Income Fund was the day's best performer, advancing 10 percent while Jute Spinners was the worst loser, slumping 9.66 percent.

Chittagong stocks also gained yesterday with the bourse's benchmark index, CSCX, increasing 59.84 points to 8,547.37.

Gainers beat losers as 150 advanced and 64 declined, while 34 closed unchanged on the Chittagong Stock Exchange.

The port city bourse traded 1.23 crore shares and mutual fund units, generating a turnover of Tk 39.59 crore.