Pharma, large-caps fuel stock indices
DSE turnover stood at Tk2,201 crore yesterday – the second highest in 2022
Increased demand for stocks of pharmaceuticals and large-caps from a wide range of sectors on Wednesday helped surge stock indices on Dhaka and Chattogram bourses.
As investors chased large-cap stocks, small and mid-cap stocks suffered price corrections.
Stockbrokers said the market has recently observed fresh fund inflow while a large number of investors have been found to be re-energised amid the market recovery from its 14-month low five weeks back.
In the Dhaka Stock Exchange (DSE), only 131 scrips gained, 155 declined, and 92 remained unchanged.
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Despite being outnumbered by losers, large-cap gainers contributed a lot as index pullers.
DSEX, the broad-based index of the premier bourse, closed 1.18% higher at 6,547.
The blue-chip index DS30, in contrast to the recent trend, significantly outperformed the broad index that contains all types of scrips.
It soared 2.04% to 2,353, while Shariah-compliant securities' index DSES rose 1.65% to 1,442 on Wednesday.
"The upward momentum persisted throughout the session as investors were active on both sides of the trading fence," EBL Securities wrote in its daily market commentary.
"Positive earnings expectations from the June-closing companies have also instilled optimism among the investors across the bourse," it added.
Other than financial services and some multinational companies, all local firms close their accounts at the end of June each year, keeping pace with the national fiscal year.
However, the majority of the buying appetite was concentrated on selective scrips while the others experienced corrections resulting from the profit-booking attempts of a section of investors.
Meanwhile, the Dhaka bourse on the day observed a notable rise in participation while the total turnover increased by 67.4% and stood at Tk2,201 crore which is the second highest in 2022.
The number of trades in the DSE increased by 32%, while the number of shares or units traded increased by 57% reflecting the increased large-cap concentration.
Till date, DSEX is 3.1% down in comparison with that of 31 December 2021, while DS30 is 7.1% down, according to an EBL Securities report.
On the sectoral front, pharmaceuticals contributed the maximum 28.3% of the DSE turnover on Wednesday, followed by miscellaneous and engineering sectors' 13% and 10.5% contribution respectively.
Jute, pharmaceuticals, and cement led the gaining sectors, while services and real estate, ceramics, and life insurance sectors suffered the maximum corrections on Wednesday.
The Chittagong Stock Exchange also had a similar day dominated by market bulls and turnover in the port-city bourse increased by 41% to over Tk43 crore.
