Dhaka, Bangladesh (BBN)- Stocks at both the bourses - Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) - bounced back strongly on Thursday, as the investors' confidence boosted up following the news of withdrawal of writ petition by one of the sponsor-directors.
The market analysts said the investors' confidence boosted up and they went for fresh buying binge following the news of withdrawal of writ petition by one of the sponsor-directors of Phoenix Finance and Investments.
A Quadir Choudhury, one of the sponsor-directors of Phoenix Finance and Investments, told reporters that considering the greater interest of the investors as well as the market, he decided to withdraw the writ petition.
On Monday last, he filed the writ petition against the SEC's directive to hold minimum two per cent shares by sponsor-directors of listed companies.
The market shot up almost 50 points within first one hour and the uptrend continued until the market closure and finally ended 175 points higher.
The DGEN, the benchmark general index of the DSE, soared 175.02 points or 3.57 percent to close at 5,076.62. The DGEN lost more than 266 points between Tuesday and Wednesday.
The broader All Shares Price Index (DSI) rose 145.08 points or 3.51 percent to close at 4,267.14. The DSE-20 Index comprising blue-chip shares also advanced 85.40 points or 2.26 percent to close at 3,859.35.
"News of withdrawal of writ petition by one of the sponsor-directors of Phoenix Finance and Investments boosted up investors' confidence, which was earlier severely affected by the writ petition on SEC's directive last Monday," stated IDLC Investments in its regular analysis.
Prices of most of the shares advanced, as out of 259 issues traded, 238 advanced, 15 declined and five remained unchanged.
The turnover value increased to BDT 4.21 billion, up by 9.8 per cent compared to BDT 3.83 billion in the previous session.
A total of 77.91 million shares changed hands on the day against 69.10 million in the previous session. The trade deals also increased to 102,095 against Wednesday's 97,930.
The total market capitalization of the DSE stood at BDT 2,643.47 billion against BDT 2,571.05 billion in the previous session.
All the major sectors went up on the day. Non-banking financial institutions (NBFIs) gained 7.2 percent followed by telecommunications 4.09 percent.
Fuel and power, banks and pharmaceuticals sectors also gained 2.87 percent, 2.43 percent and 2.14 percent respectively.
LankaBangla Finance continued to top the turnover chart with shares worth BDT 276.39 million changed hands.
The other turnover leaders were Grameenphone, Jamuna Oil, Titsa Gas, Meghna Petroleum, Beximco Limited, Beximco Pharma, Aftab Automobiles and UCBL.
Pioneer Insurance was the day's highest gainer posting a rise of 12.56 percent.
It was followed by Navana CNG, LankaBangla Finance, Peoples Leasing, IDLC Finance, In Tech Online, Uttara Finance, Aftab Automobiles, Union Capital and BD Autocars.
The day's worst losers included Renata, Northern Jute Manufacturing, ABB First Mutual Fund, Agrani Insurance, EBL NRB Mutual Fund, Fourth ICB, Zeal Bangla Sugar Mills, Sub 25 per cent Convertible Bonds of BRAC Bank, Titas Gas and Second ICB.
Similarly, the CSE key index, CSCX, gained 319.76 points to close at 9589.05 today though it lost 331.73 points on Wednesday.
At the CSE, 166 issues gained, 11 suffered losses and three remained unchanged at the end of the day’s trading. In a reversal way, 9 issues gained, 171 suffered losses and 6 remained unchanged on Wednesday.
The CSE turnover climbed up to BDT 616.90 million as against BDT 492 million recorded on Wednesday.
BBN/SSR/AD-11May12-3:05pm (BST)
