Stocks surge to end a winning week

Stocks in Bangladesh returned to black yesterday helping the bourses end the week on a high note, thanks to increasing investors' participation buoyed by a fall in oil prices globally and some easing of volatility in the foreign exchange market.   

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 74 points, or 1.18 per cent, to close at 6,355.

The DS30, the blue-chip index, went up 1.05 per cent to 2,267, and the DSES, the shariah-based index, advanced 0.79 per cent to 1,390.

Turnover, one of the important indicators of the market, surged 57 per cent to Tk 1,777 crore, the highest in seven months.

Of the securities, 234 advanced, 54 declined, and 91 did not show any price movement.

Stocks rebounded to the gaining streak after a single-day break, as the bargain-hunters went on late hours buying on sector-wise issues amid rising turnover, said International Leasing Securities Ltd (ILSL), a brokerage house, in its daily market review.

"Investors' confidence received a boost to some extent amid a declining trend of fuel prices in the global markets as well as the stability in the foreign exchange market due to the central bank's steps."

Yesterday, Orion Infusion topped the gainers' list with a 10 per cent rise. National Housing Finance Company, Delta Life Insurance, Meghna Life Insurance, and GQ Ball Pen Industries were also on the list.

Sonargaon Textiles suffered the most, giving up 3.69 per cent. Central Pharmaceuticals, Emerald Oil, S Alam Cold Rolled Steels, and Safko Spinning Mills were among the major losers.

Beximco Ltd was the most-traded stock with its scrips worth Tk 108 crore changing hands. Orion Pharmaceuticals, Olympic Industries, Bangladesh Shipping Corporation, and Delta Life Insurance also witnessed significant turnover.

Shares on the Chittagong Stock Exchange (CSE) also rose yesterday, with the Caspi, the all-share price index of the bourse in the port city, advancing 139 points, or 0.75 per cent, to end at 18,642.

Of the securities, 166 advanced, 70 retreated, and 76 were unchanged.

Yesterday's gains meant both exchanges fell only on a single session which was on Wednesday. 

Throughout the week, the exchanges remained bullish amidst enthusiastic participation of investors, helped by the government's move to import Russian oil via a third country. The move could help Bangladesh cut fuel import bills and rein in inflation.

Recently, the central bank has taken some strong steps to curb the volatility in the foreign exchange market. As a result, the US dollar did not see much appreciation against the taka last week like in the previous weeks.

Almost all the sectors performed well in the week and generated positive returns.