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Buoyant stocks boost turnover to two-month high

FE REPORT | July 10, 2024 00:00:00

Stocks witnessed yet another bullish session on Tuesday, extending the winning streak for the sixth straight session, with turnover surpassing Tk 10 billion after two months.

The market recovery was supported by price appreciation of a majority of stocks as investors kept on chasing quick rallies owing to heightened optimism across the trading floor.

The daily turnover was Tk 10.19 billion, climbing further by nearly 15 per cent over the day before. It was the biggest single-day turnover since May 7 this year.

DSEX, the benchmark index of the Dhaka Stock Exchange, went up more than 30 points or 0.54 per cent to 5,594, again the highest in almost two months.

The prime index recovered more than 266 points in the past six trading days while the market value surged by Tk 117 billion during the period.

The recent news that the government may allow public servants to trade in the share market coupled with lucrative prices of good stocks lured investors into investing in stocks, as believed by market operators.

"Increased market participation across the trading floor added further strength to the market's recovery," said EBL Securities.

Square Pharma, Best Holdings, Kohinoor Chemicals, BBS Cables, and Robi Axiata were top index movers. They jointly accounted for one-third rise of the key index on Tuesday.

Square Pharma, the second largest listed firm in terms of market capitalisation, saw a 0.50 per cent price hike, contributing to an almost 3-point rise of the key index alone.

The blue chip index DS30, a group of 30 prominent companies, rose 5 points to 1,964 while the DSES Index, which represents Shariah-based companies, gained 8 points to 1,223.

Buyers kept their dominance, particularly in the later part of the day's session, leading to the rally of most stocks on the bourses, according to an analysis by EBL Securities.

Most of the traded issues saw price appreciation, as out of the 393 issues traded, 237 closed higher, 111 ended lower and 45 remained unchanged on the DSE trading floor.

Investors were mostly active in the pharmaceutical sector, which accounted for 15 per cent of the day's total turnover, followed by textile (12 per cent) and food (11 per cent) sectors.

Most sectors posted gains with the ceramic sector experiencing the highest gain of 2.8 per cent, followed by service, tannery, IT, textile and general insurance sectors.

Sea Pearl Beach Resorts became the most-traded stocks with shares worth Tk 535 million changing hands, followed by Capitec Green Bank Growth Fund, Beach Hatchery, and Salvo Chemicals.

Salvo Chemicals was the top gainer, rising 10 per cent, while Rupali Life Insurance was the worst loser, shedding 3 per cent.

The Chittagong Stock Exchange (CSE) also ended higher with its All Share Price Index (CASPI) rising 95 points to 15,889 and the Selective Categories Index (CSCX) gaining 57 points to 9,564.

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