Dhaka stocks surged on Wednesday with the turnover hitting a three-and-a-half-month high as the institutional investors went for buying ahead of Eid-ul-Fitr.
DGEN, the benchmark general index of Dhaka Stock Exchange, gained 1.22 per cent or 50.07 points, to close the day at 4,142.23 points.
The DGEN was flat on Tuesday after gaining 52.41 points on Monday. In the previous five sessions, the DGEN had lost 245 points.
Turnover of the bourse increased to Tk 369.28 crore from that of Tk 259.83 crore on the day before.
The DSE turnover was Tk 477.25 crore on May 5, the highest turnover seen in recent past.
Market operators said some institutional investors went for buying shares as some retailers went for selling ahead of Eid.
‘Wednesday’s market rose as the institutions and retailers participated heavily,’ said Union Capital managing director Akter H Sannamat.
He said the market is way down and the investors are thinking of long-term position ahead of Eid.
The ease in micro-economic front also made some investors hopeful, he said.
‘Many investors have to sell shares before Eid to meet the additional expenses of the festival. As the institutional investors got some relief due to some positive economic changes in the last two weeks, they might be cashing on it,’ said a stockbroker.
He said some large-scale individual investors also perhaps became active in the market.
‘Whoever is selling though, they cannot cash it before Eid as the bourse has only three working days before Eid and it takes four days to settle the accounts,’ he said.
Brokerage house officials said the market was highly volatile in the first two hours, but picked the pace in the closing hours when some scrips reached their upper limit.
They said institutional investors became hopeful as the inflation came down to 5 per cent and Bangladesh Bank’s reserve reached to 11 billion.
Non-bank financial institutions lost 0.23 per cent and telecommunications lost 0.08 per cent on Wednesday while power gained 4.02 per cent, pharmaceuticals 0.66 per cent and banks gained 0.11 per cent.
Of the 270 issues traded on Wednesday, 204 advanced, 48 declined and 18 remained unchanged.
Unique Hotel topped the turnover leaders’ chart with its shares worth Tk 22.73 crore changing hands.
The other turnover leaders were Bangladesh Submarine Cable Company, Titas Gas, RN Spinning Mills, Grameenphone, Jamuna Oil, Keya Cosmetics, Square Pharmaceuticals, Summit Power and Saiham Cotton Mills.
-With New Age input
