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Core index hits new high as banks, financial stocks surge

FE REPORT | September 29, 2021 00:00:00

Stocks extended the rally for the second straight day on Tuesday.

The key index of Dhaka Stock Exchange (DSE) soared to new high as investors put fresh bets on stocks amid positive expectations.

The market opened on a positive note and the upward trend sustained till the end following the news that the central bank allowed banks to invest the entire special fund in asset-backed green Sukuk.

DSEX, the benchmark index of the DSE, went up 45.52 points or 0.62 per cent to settle at more than 7,297 - the highest since its inception nearly nine years back on January 27, 2013.

The DSE 30 Index, comprising blue chips, rose 15.57 points to finish at 2,691, also the highest since its introduction on January 27, 2013.

The DSE Shariah Index (DSES) went up 6.51 points to close at 1585.

Turnover, a crucial indicator of the market, crossed Tk 21 billion-mark and amounted to Tk 21.35 billion on the DSE, which was 7.82 per cent higher than the previous day's tally of Tk 19.80 billion.

Market insiders said stocks extended their rally as buoyant investors are putting fresh bets on major sector stocks, particularly on banking and financial institutions.

After witnessing volatility in the past few days, the market soared after the Bangladesh Bank allowed banks to invest the entire special fund in asset-backed green Sukuk, including Beximco's Tk 30 billion Sukuk, said a merchant banker.

However, the central bank's directive came at a time when the country's Sukuk - Beximco Green Sukuk al Istisna'a, approved by the securities regulator, was struggling to attract investors.

Of Tk 30 billion Sukuk, Tk 7.50 billion is supposed to be raised through initial public offering and the remaining Tk 22.50 billion is supposed to be raised through private placement.

Even after the expiry of the first two deadlines for the Sukuk's IPO, the subscription reached only 7.42 per cent, prompting the issuer of the Sukuk to seek another phase of time extension for the IPO subscription.

The third phase of IPO subscription will end on September 30. The subscription of the Sukuk through private placement will continue until January 2022.

The investors were taking positions in bank sector stocks as the central bank allowed banks to invest in a private Green Sukuk from their special funds meant for investment in the capital market, commented International Leasing Securities.

The stockbroker noted that the investors were taking position in banking, financial institutions, cement, engineering, and power sector stocks, which led the benchmark index to hit new high.

Major sectors posted gain with non-bank financial institution saw the highest rise of 2.20 per cent, followed by cement with 2.20 per cent, banking 0.80 per cent, power 0.60 per cent and engineering 0.40 per cent.

Losers, however, took a modest lead over the gainers as out of 375 issues traded, 172 closed lower, 164 higher and 39 issues remained unchanged on the DSE trading floor.

Orion Pharma topped the turnover list again with shares worth Tk 1.17 billion changing hands, closely followed by LafargeHolcim (Tk 1.11 billion), Beximco (Tk 1.09 billion), Shahjibazar Power (Tk 699 million) and Saif Powertec (Tk594 million).

Low-cap companies dominated the day's gainer chart with Deshbandhu Polymer was the top gainer, posting a 8.67 per cent rise while Monno Ceramic was the worst loser, losing 5.12 per cent.

The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index - CASPI -gaining186 points to settle at 21,334 and the Selective Categories Index - CSCX- rising 114 points to close at 12,805.

Of the issues traded, 167 advanced, 126 declined and 26 remained unchanged on the CSE trading floor.

The port-city bourse traded 20.77 million shares and mutual fund units with turnover value of Tk 670 million.

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