Stocks jump on bright data, regulator's move

Stocks bounced back last week to break a two-week spell of bad outcomes, thanks to the regulator's efforts to rein in the freefall in share prices.

DSEX, the benchmark index of Dhaka Stock Exchange, rose 75.04 points or 1.85 percent, to close the last week at 4,122.32.

Bangladesh Securities and Exchange Commission sat with some top institutions, brokers, and merchant banks on Monday to discuss the current market situation against the backdrop of high volatility in the market.

The regulator asked the brokerage houses and merchant banks to extend support to the falling market.

The severe correction pushed several scrips to attractive valuation levels, which lured in investors from the sidelines, IDLC Investments said.

“In addition, the BSEC turned active in the face of the rapid correction which provided some comfort to the investors,” the merchant bank said.

After the regulatory move, investors bought heavily into the market, helped by corporate and earnings disclosures, the IDLC said.

The declarations fuelled the buying pressure as a significant number of stocks posted profit growth for the Jan-Mar 2015 period, despite investors' concern over the political situation, it added.

Last week's daily turnover averaged at Tk 360.47 crore, which was 5.76 percent higher than the previous week.

Among the major sectors, fuel and power rose 6.2 percent, the week's biggest jump, followed by non-bank financial institutions at 5.4 percent, banks 2.2 percent and pharma 2.2 percent. Conversely, the food and allied sector fell 2.2 percent.

Of the 319 issues that traded on the premier bourse, 39 advanced and 68 declined, while 12 remained unchanged.

United Power Generation and Distribution Company topped the week's turnover leaders' chart with 77.59 lakh shares worth Tk 146.71 crore changing hands. ACI Formulations followed, with ACI, Shahjibazar Power Company and IFAD Autos in tow.

Intech Online was the week's top gainer, registering a 29.17 percent increase, while Pioneer Insurance plunged 5 percent and ended up as the worst loser.