Stocks break 5-day losing streak

Dhaka stocks broke a five-day losing streak yesterday with a 1.35 percent gain as institutional investors went on a buying spree.

The benchmark index—DSEX—rose 79 points to close at 5,949. However, the daily turnover fell 26.69 percent to Tk 322.84 crore compared to the previous day.

The active participation of institutional investors helped the market bounce back, said Mostaque Ahmed Sadeque, president of DSE Brokers' Association (DBA).

He blamed the fall in the last five days on the weakness of institutional investors.

Institutional investors did not play their due role when the market went into a free-fall, rather they created panic by taking part in the selling spree, he said.

On Monday, finance ministry officials sat with the regulators concerned to discuss the present condition of the market.

Dhaka stocks returned to the black as investors regained confidence, EBL Securities said in its daily market analysis.

The broad index hit 5,972 points—the highest level on the day—and settled at 5,949 at the end of the session, according to the DSE. At the Dhaka bourse, 276 securities advanced, 38 declined and 23 remained unchanged. DS30 and DSES gained 24.87 points and 8.36 points respectively.

LankaBangla Finance topped the turnover list followed by Pharma Aids, Brac Bank, Beximco Pharmaceuticals and Square Pharmaceuticals.

Investors' attention was mostly concentrated on the banking sector that accounted for 18.2 percent of the day's turnover followed by pharmaceuticals and chemicals 17 percent and financial institutions 13.4 percent.

The port city bourse also closed higher while CSCX and CASPI increased by 149.61 and 243.48 points respectively.