Core index marginally up after modest volatility

Stocks extended the rally with key index of the Dhaka Stock (DSEX) surpassing the 7,300-mark on Wednesday, for the first time after the index was introduced nearly nine years back.
The market opened on a positive note and sustained till end amid modest volatility, finally ended slightly higher. Although the key index rose marginally, it's enough to reach an all-time high.
DSEX, the benchmark index of the DSE, went up by 5.61 points or 0.07 per cent to settle at 7,302-the highest since its inception on January 27, 2013, replacing the then key index -- DGEN.
However, the all-time high DGEN Index was 8,918 points recorded on December 5, 2010, when the market saw a bull run before a crash.
The DS30 index comprising blue chips also followed the suit to close at its historical high at 2,696, after gaining 5.05 points. The DS30 Index was also launched on January 27, 2013.
However, the DSE Shariah Index (DSES) went down slightly by 1.62 points to finish at 1,583.
Turnover, another important indicator of the market, stood at Tk 22.69 billion on the prime bourse, which was 6.28 per cent higher than the previous day's tally of Tk 21.35 billion.
Market analysts said stocks extended the rally for the three consecutive sessions as people are putting fresh funds on stocks anticipating positive momentum ahead.
The non-bank financial institution (NBFI) and cement sectors pushed the market upward, they said. The NBFI sector gained 3.50 per cent and the cement sector surged 2.30 per cent.
Institutional investors' funds have continued to flow to the stock market so the index was rising, said Khairul Bashar Abu Taher Mohammed, CEO of MTB Capital.
Many institutional investors took up a central bank incentive package and actively made investments, he said.
"Many good issues are still lucrative, he said but cautioned that some stocks were already overvalued which may cause loss of investment".
If they can invest into well-performing stocks then they will be gainer, he added.
Institutional investors preferred buying stocks as they hope the index will rise further as money flow in the banking sector may increase, said a stockbroker.
He noted that easing the Covid-19 situation, ongoing mass vaccination, faster economic recovery hopes and lower interest rate on banks deposit helped investors kept their confidence in the market.
However, more than 59 per cent traded issues saw price fall as out of 376 issues traded, 223 closed lower, 115 higher and 38 issues remained unchanged on the DSE trading floor.
Despite a fall in share prices of most of the companies, the market ended positive as a number of large-cap stocks like Investment Corporation of Bangladesh, LafargeHoilcim, Power Grid Company soared, he said.
However, some investors were cautious as the Bangladesh Bank on Monday allowed banks to invest the entire money of their Tk 2.0 billion special stocks fund in Shariah-compliant Sukuk, including Beximco's Tk 30 billion Sukuk, market insiders said.
LafargeHolcim Bangladesh topped the turnover list with shares worth nearly Tk 2.05 billion changing hands, followed by Beximco, Orion Pharma, LankaBangla Finance and Dragon Sweater.
Sea Pearls Beach Resorts was the day's top gainer, posting a 9.36 per cent gain while Savar Refractories was the worst loser, losing 5.62 per cent.
However, the Chittagong Stock Exchange (CSE), edged lower with the CSE All Share Price Index - CASPI -losing 11 points to settle at 21,323 and the Selective Categories Index - CSCX shedding 5.0 points to close at 12,800.
Of the issues traded, 168 declined, 108 advanced and 37 remained unchanged on the CSE trading floor.
The port-city bourse traded 21.84 million shares and mutual fund units with turnover value of Tk 914 million.

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