The benchmark Dhaka Stock Exchange (DSE) index extended its winning streak to a fifth consecutive session on Wednesday, closing at its highest level in nearly 22 months as continued optimism over deregulations and market reforms outweighed profit-taking, although trading activity eased from the previous session.
The broad-based DSEX index gained 0.25 per cent to 5,926 on Wednesday. The benchmark has now advanced for five straight trading sessions, reflecting sustained investor optimism over proposed market deregulations.
Turnover declined 8.2 per cent to Tk1,519 crore, compared with Tk1,651 crore in the previous session.
The market opened on a firm footing as investors accumulated large-cap stocks, although intermittent profit-taking erased part of the early gains, EBL Securities Research wrote in its daily market commentary.
“Sustained buying interest towards the close, however, kept the benchmark in positive territory and extended the rally,” it added.
Market analysts said improving investor risk appetite continued to support equities amid expectations of regulatory reforms aimed at improving liquidity and trading efficiency, including proposed changes to margin lending rules, a shorter settlement cycle and the planned introduction of intraday trading.
Pharmaceuticals accounted for the largest 14.3 per cent share of turnover, followed by banks’ 12.2 per cent and textiles’ 11.1 per cent contribution to the total turnover on the DSE.
Among sectors, cement rose 2.3 per cent, ceramics gained 1.2 per cent and mutual funds advanced 1.0 per cent. On the downside, jute fell 2.6 per cent, services declined 1.6 per cent and tannery slipped 1.2 per cent.
Market breadth turned negative despite the higher benchmark, with 127 issues advancing, 210 declining and 59 remaining unchanged out of the 396 securities traded on the DSE, indicating that gains were concentrated in a relatively small group of large-cap stocks.
The Chittagong Stock Exchange also ended higher, with the Selective Categories Index gaining 65.5 points and the All Share Price Index rising 91.3 points.
