The seemingly positive impact of government intervention in the stock market along with encouraging corporate declaration witnessed an upbeat condition in the Dhaka bourse for the second consecutive session on Sunday. In a buyer-driven market, DGEN, the barometer of Dhaka Stock Exchange (DSE), hiked 463.27 points to stand at 6389.62 points.
Market experts also attributed the sharp rise in the market to 'regaining of confidence' by the investors. The finance minister's assurance of stopping the 'forced sale' of shares by merchant banks and the decision to purchase share through state-owned financial institutions also provided boost to the market.
"The government's latest positive measures regarding stock market gave some comforts to the retail investors," said MD Moniruzzaman, head of merchant banking division of IDLC Finance Limited.
"The government's latest step to stop triggered sale of shares by the merchant banks also contributed to the small investors' regained confidence," Mr Moniruzzaman said.
On the day, Dhaka Bank declared 35 per cent, One Bank declared 55 per cent and Prime Bank 35 per cent stock and 5 per cent cash dividends and non-banking financial institution LankaBangla Finance declared 55 per cent stock dividend. Each of these four companies declared dividend in higher ratio compared to the last year.
The market began in flying colours, gaining more than 400 points within the first 15 minutes of trading. After that, it continued an upward trend as most of the scripts touched the upper limit of their individual circuit breakers and finally closed 463.27 points higher.
The benchmark DSE General Index (DGEN) --- the market barometer went up by 7.81 per cent or 463.27 points to settle at 6389.63.
The broader DSE All Shares Price Index (DSI) ended at 5295.60, rising 7.73 per cent or 379.98 points. The DSE-20 index including blue chips soared 8.07 per cent or 322.59 points to 4321.77.
President of DSE Shakil Rizvi said, "I think investors got their confidence back with the various steps by the government. If the confidence level can be maintained among the investors, the market can bounce back without the intervention of the government."
Terming the indiscriminate rise of every stock price not good for stock market, Mr. Rizvi said investors should avoid 'over valued' shares.
Out of 259 issues traded on the day, 251 advanced, only 8 issues declined.
A total of 52.95 million shares changed hands against 61.15 million in the previous trading session. The number of trade deals came down to 93,814 which was 148,795 in the previous session. However, the total market capitalisation increased to Tk 2871.49 billion against Tk 2710.50 billion in the one of the previous session.
The uptrend of the market was witnessed as all sectors' shares gained significantly. Major sectors including banks, NBFIs, pharmaceuticals and fuel and power entities gained 5.90 per cent, 6.77 per cent, 6.36 per cent and 7.96 per cent respectively. The trading of GrameenPhone, the sole listed telecommunication company, was suspended due to the record date after corporate declaration.
The total turnover stood at Tk 5.78 billion, down by 16.2 per cent compared to the previous session. National Bank was the top turnover leader with shares worth Tk 569.68 million changing hands.
The other turnover leaders were One Bank, LankaBangla Finance, Prime Bank, Beximco Limited, Titas Gas, Peoples Leasing, Square Pharma, CMC Kamal and Aftab Automobiles.
Dhaka Bank was the top gainer posting a rise of 18 per cent followed by One Bank, Prime Insurance, LankaBangla Finance, Active Fine Chemicals Limited, Bextex, Meghna Petroleum, Summit Alliance Port Limited, Keya Cosmetics and Navana CNG.
The day's prominent losers were UCBL, Apex Spinning, First ICB, Fifth ICB, CMC Kamal and Delta Life.
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