Stocks rally as turnover tops Tk 20b again

DSE key index surges 177 points in five days

FE REPORT | Thursday, 1 September 2022

Stocks extended their winning streak on Wednesday, with turnover crossing Tk 20 billion mark once again, as smart investors continued to put fresh bets on major sector shares.
Turnover, a crucial indicator of the market, stood at Tk 20.05 billion on the country's premier bourse, up 13 per cent from the previous day's turnover of Tk 17.69 billion.
It was the second highest transaction of this year as the Dhaka Stock Exchange (DSE) clocked the highest turnover of Tk 21.05 billion on Sunday last.
The market opened higher and the core index rose about 42 points within the first two hours of trading, but the rest of the session eroded some early gains as investors rushed to lock in profit.
Finally, DSEX, the prime index of the DSE, settled 24.38 points or 0.38 per cent higher at 6,457. The DSEX surged about 177 points in the past five trading days.
Five large-cap stocks such as LafargeHolcim, Bashundhara Paper Mills, Power Grid Company, GPH Ispat and Bangladesh Shipping Corporation jointly added about 17 points to the DSEX, according to amarstock.com, a market data analyst.
The continuous rise in turnover and the equity index suggests that investor confidence in the market remains bullish, said a merchant banker.
He noted that the stability in the foreign exchange market, rising private sector credit growth and the fuel price cut kept the market afloat.
The private sector credit grew 14 per cent in July, compared to the previous month.
Besides, the floor price restriction contributed most to the recent price surge as many investors regained confidence over the market, said the banker.
According to EBL Securities, the capital market continued to propel for the fifth sessions as investors regained their confidence and continued to invest in the market.
Some indications of slight mitigation of the economy, such as lowering fuel prices and stabilizing foreign exchange rates restored investors' confidence in the capital market, said the stockbroker.
Two other indices also edged higher. The DS30 index, comprising blue chips, advanced 3.73 points to finish at 2,283 and the DSE Shariah index gained 2.38 points to close at 1,398.
The textile sector kept its dominance on the turnover chart, capturing 19 per cent of the day's total turnover, followed by pharmaceuticals (14 per cent) and engineering (12 per cent).
Large-cap sectors posted mixed performance. Among the major sectors, fuel & power booked the highest gain of 0.62 per cent, followed by banking (0.40 per cent), engineering (0.35 per cent) and pharma (0.08 per cent).
On the other hand, the non-bank financial institutional sector faced the highest correction of 1.23 per cent, followed by food (0.16 per cent) and telecom (0.06 per cent).
Gainers took a modest lead over the losers, as out of 380 issues traded, 179 advanced, 135 declined and 66 issues remained unchanged on the DSE trading floor.
LafargeHolcim Bangladesh became the most-traded stock with shares worth Tk 974 million changing hands followed by Beximco, Bangladesh Shipping Corporation, Orion Pharma and Makson Spinning Mills.
Bashundhara Paper Mills was the day's highest gainer, posting a 9.95 per cent rise while Intraco Refueling Station was the day's worst loser, shedding 9.98 per cent.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index (CASPI) gaining 108 points to settle at 19,005 and its Selective Categories Index (CSCX) rising 63 points to close at 11,389.
Of the issues traded, 157 advanced, 99 declined and 52 issues remained unchanged.
The port-city bourse traded 25.25 million shares and mutual fund units with turnover value of nearly Tk 707 million.

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