Fresh optimism sends stocks to black

Stocks rose yesterday after a two-day losing streak, as investors went on a buying spree seeing the low price of shares.
DGEN, the benchmark General Index of Dhaka Stock Exchange, finished the day at 4,384.99 points, after surging 60.23 points or 1.39 percent.
Investors bought shares anticipating a bull-run, as institutional investors injected money into the market, market analysts said.
Foreign portfolio managers and investors were also interested in the Bangladeshi market, which had a significant impact on the turnover, they said.
Turnover rose 15.85 percent from the previous day to Tk 610 crore.
Finance Minister AMA Muhith's pledge to take action against Sonali Bank officials was helpful in boosting investors' confidence, the analysts said.
“Apart from the Sonali Bank officials, several others are linked with the recent Hall-Mark Group loan scam and they would be sued soon,” Muhith said yesterday.
The banking sector that accounts for 30 percent of the market capitalisation on the Dhaka bourse witnessed a 5.37 percent fall in the last week, following the Sonali Bank swindle.
“Apparently, investors counted a recent fall as 'well enough' to take fresh position,” said IDLC Investments, a leading merchant bank.
“In addition, continuous healthy turnover spurred market sentiment positively.”
The power and telecom sector led the day's trading session, which rose by 3.5 percent and 2.27 percent respectively.
Non-bank financial institutions rose 2.33 percent, while pharmaceuticals by 0.51 percent.
A total of 1.38 lakh trades were executed, with 12.15 crore shares and mutual fund units changing hands on the Dhaka bourse.
Of the 267 issues that traded on the DSE floor, 175 advanced, 73 declined and 19 remained unchanged.
Bangladesh Submarine Cable Company was the top traded stock of the day, with its transaction of 33.54 lakh shares worth Tk 49.55 crore shares.
Unique Hotel and Resorts, which rose by 9.97 percent, was the biggest gainer of the day, while Progressive Life Insurance was the worst loser, plunging by 5.31 percent.