DSEX exceeds 5,000-mark on buying binge

Turnover slumps below Tk 10b-mark

FE REPORT | Tuesday, 29 September 2020

Stocks rebounded Monday, after a single-day break, with key index of the major bourse crossing the threshold of 5,000-mark once again as investors showed their appetite on large-cap stocks amid high expectations.
The market opened on upbeat note and the key index soared 58 points within first hour of trading. But, eroded nearly half of the initial gain as the session progressed amid profit booking sell-offs.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 32.01 points or 0.64 per cent to settle at above 5,000-mark again after four-day to 5,003 points.
Market operators said the investors went on buying binge on major sectors stocks riding on the news of interest rate cut on stock investment fund.
Bangladesh Bank has reduced the interest rate on borrowing from its special investment fund to 4.75 per cent from 5.0 per cent, aimed at helping the country's lenders increase their stock investment capacity.
Investor's expectation regarding the market remained positive as they kept on taking fresh positions in sector-wise stocks amid expectations of better return, commented EBL Securities, in its regular market analysis.
Top positive index contributors were United Power, Beximco, Beximco Pharma, City Bank and Grameenphone, according to data from amarstock.com, a stock market data analyst.
Two other indices also ended higher. The DS30 index, comprising blue chips, gained 21.82 points to finish at 1,712 and the DSE Shariah Index rose 9.46 points to close at 1,131.
According to International Leasing Securities, the bargain hunters showed their buying interest from the opening of the session which continued till the closure but some risk-averse investors booked some gain during the session.
The stockbroker noted that the upward movement of index was mainly driven by the opportunist investors' buying spree riding on the news that the Bangladesh Bank reduced the interest rate on borrowing from its special investment fund.
Turnover, a crucial indicator of the market, however, dropped to below Tk 10 billion-mark again and amounted to Tk 8.79 billion, which was 15 per cent lower than the previous session's Tk 10.34 billion.
Among the major sectors, engineering posted the highest gain of 4.10 per cent, followed by banking with 1.30 per cent, power 1.0 per cent, pharma 0.80 per cent and telecom 0.20 per cent.
General insurance, life insurance, food and financial institutions sectors lost 2.50 per cent, 1.50 per cent, 1.0 per cent and 0.90 per cent respectively.
Gainers outnumbered the losers as out of 356 issues traded, 154 closed lower, 151 ended higher while 51 issues remained unchanged on the DSE trading floor.
A total number of 178,818 trades were executed in the day's trading session with a trading volume of 353.95 million shares and mutual fund units.
The market-cap on the premier bourse jumped to Tk 3,978 billion on Monday, from Tk 3,952 billion in the previous session.
Beximco Pharma topped the turnover list with shares worth Tk 511 million changing hands, closely followed by Beximco, City Bank, Brac Bank and Asia Pacific Insurance.
Anwar Galvanizing was the day's best performer, posting a gain of 10 per cent while United Insurance was the worst loser, losing 8.67 per cent.
The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI)-soaring 112 points to close at 14,299 while the Selective Categories Index - CSCX rising 75 points to close at 8,582.
Of the issues traded, 133 advanced, 104 declined and 42 remained unchanged on the CSE.
The port city bourse traded 12.62 million shares and mutual fund units with turnover value of Tk 201 million

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