Stocks continue its march for third day

Stocks continued to gain for a third straight session yesterday, with the turnover hitting a 65-month high of Tk 1,704 crore on the back of a surge in trading of banking shares.

DSEX, the benchmark index of Dhaka Stock Exchange, advanced 56.8 points, or 1.07 percent, to finish the day at 5,333.87 points, while the turnover increased 0.44 percent from the previous day.

The banking sector shares' contribution to the total turnover doubled to 13.5 percent from the previous day.

“Robust market momentum continued unhindered,” IDLC Investments, a merchant bank, said in its regular analysis.

Insiders said investors are expecting healthy corporate disclosures such as net profit and dividend from the listed banks, which earned handsome operating profits in 2016 despite a sharp fall in lending rates.

The prices of banking shares are still lucrative for investment, leading many investors to take positions, IDLC said.

Of the traded issues on the premier bourse yesterday, 194 advanced, 117 declined and 15 remained unchanged.

Beximco continued to dominate the turnover chart with its transactions of 2.79 crore shares worth Tk 91.66 crore, followed by IFAD Autos, Aman Feed, Desco and RSRM.

Among the major sectors, non-bank financial institutions increased the most -- by 3.17 percent -- in market capitalisation, followed by banks at 3.07 percent, general insurance 2.7 percent, life insurance 2.61 percent, textiles 1.06 percent, pharmaceuticals 0.39 percent and telecommunication 0.31 percent.

Conversely, engineering and cement sectors declined 1.17 percent and 0.36 percent respectively.

Premier Bank was the day's best performer, posting a 9.9 percent gain. Aramit Cement was the worst loser, plunging 4.77 percent. Chittagong stocks continued to rise with the bourse's benchmark index, CSCX, increasing 92.6 points, or 0.94 percent, to close at 9,926.48.

Gainers beat losers as 164 advanced and 97 declined, while 10 finished unchanged on the Chittagong Stock Exchange. The port city bourse traded 3.83 crore shares and mutual fund units, generating a turnover of Tk 96.94 crore.