Dhaka stocks surged on Thursday, advancing for the third consecutive session, as a section of optimistic investors dominated the buying side after the recent corrections in share prices, market operators said.
DSEX, the key index of the Dhaka Stock Exchange, increased by 123.71 points, or 2.30 per cent, to close at 5,497.56 points on the day, after adding 33.65 points in the previous session.
The key index on Thursday started to rise from the start of the session and maintained the rising trend till the end of the session, ultimately finishing in the green territory.
The total turnover of the DSE also saw a surge, as investors elevated their activity across the trading board, increasing the total turnover by almost Tk 200 crore on the day.
The total turnover on Thursday stood at Tk 770.70 crore compared with that of Tk 539.27 crore in the previous session.
Md Ashequr Rahman, managing director of the Midway Securities Ltd, told ¶¶Òõ¾«Æ· that the market came down to such a point that a little positive momentum would help it surge.
‘Many investors got their IPO refund from a new entering IPO on Tuesday, the total amount of which would be about Tk 2,000 crore. Investors usually use at least 30 per cent of the refund for trading on the secondary market, which may have helped the market to surge,’ he said.
He added that many investors sold their shares before the end of the financial year 2023-24 to book profits, protect their funds or to adjust their portfolios.
Many investors reinvested in the secondary market after the start of the new financial year, he said.
Saiful Islam, president of the DSE Brokerage Association of Bangladesh, told ¶¶Òõ¾«Æ· that the media reports that the government might allow government employees to trade in shares might have a positive impact on the market.
‘The market has been falling for a prolonged period; getting a few good news at this time did bear a positive influence on investors,’ he said.
In the past 19 weeks, the DSE moved forward in only five weeks.
Of the 396 issues traded on Thursday, 365 advanced, 13 declined and 18 remained unchanged.
The DSE Shariah index increased by 22.14 points, or 1.86 per cent, to close at 1,208.69 points on the day.
The DS30 index gained 38.40 points, or 2.00 per cent, to finish at 1,951.33 points.
On the sectoral front, pharmaceutical issues exerted the highest turnover, followed by the textile and bank shares.
EBL Securities in its daily commentary said, ‘Dhaka stocks observed a sharp upturn owing to increased investor participation riding on rebounded optimism across the trading floor, along with some fresh fund injections following the refund amount of the latest IPO subscription hitting investor portfolios.’
Orion Pharma topped the turnover chart on the day with its shares worth Tk 27.53 crore changing hands.
BRAC Bank, Sea Pearl Beach Resort & Spa, Alif Industries, British American Tobacco Bangladesh, SAIF Powertec, Asiatic Laboratories, Taufika Foods and Lovello Ice-cream, Best Holdings and Malek Spinning Mills were the other turnover leaders.