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DSE turnover hits two-month high -

Low-cap cos continue to dominate gainers' list

FE REPORT | August 03, 2021 00:00:00

The daily trade turnover on Dhaka Stock Exchange (DSE) hit two months high on Monday as investors put fresh funds on stocks riding on new hope after the central bank unveiled expansionary monetary policy.

Turnover, a crucial indicator of the market, climbed to Tk 21.88 billion on the country's premier bourse, in a further rise by 44 per cent over previous day's mark of Tk 15.21 billion.

It happens to be the biggest single-day transaction since June 10, this year, when the turnover recorded of Tk 26.69 billion.

Along with high turnover, the prime index of the DSE went up by 56.31 points or 0.87 per cent to settle at 6,481, the highest since its inception more than eight years back in 2013.

The blue chip index DS30, also rose 16.22 points to settle at an all-time high at 2,344, highest since its inception on January 27, 2013. The DSE Shariah Index also rose 11.10 points to close at 1,412.

Market insiders said stocks remained bullish amid growing investors' confidence driven by various market supportive reforms, lower returns from the money market coupled with earnings surprises of some listed firms despite the pandemic.

The institutional investors preferred buying stocks as they hope the index will rise further as money flow in the banking sector may increase as the central bank unveiled expansionary monetary policy, they said.

The enthusiastic investors showed their buying appetite following the expansionary monetary policy statement by the central bank and gradual improvement of economic activities despite Covid-19 pandemic, commented International Leasing Securities.

The bargain hunters took position in sector specific issues, particularly in engineering, textile, financial institutions, pharma, power and food sector stocks, said a stockbroker.

The stockbroker noted that some others were reshuffling their portfolios based on the latest quarterly earnings disclosures and to book dividend income.

Among the major sectors, engineering generated the highest return of 3.40 per cent, followed by financial institutions with 2.60 per cent, pharmaceuticals 1.10 per cent and power 1.0 per cent.

On the other hand, banking, telecommunication, general insurance and life insurance suffered most, losing 0.20 per cent, 1.58 per cent 1.60 per cent and 1.90 per cent respectively.

Gainers took a strong lead over the losers, as out of 375 issues traded, 232 ended higher, 109 lower while 25 remained unchanged on the DSE trading floor.

A total number of 335,029 trades were executed in the day's trading session with a trading volume of 764.50 million shares and mutual fund units.

Beximco - the flagship company of Beximco Group-topped the turnover list with shares worth Tk 589 million changing hands, closely followed by Saif Powertec (Tk 581 million), Orion Pharma (Tk 542 million), GPH Ispat (Tk 503 million) and Fu-Wang Ceramic (Tk 399 million).

S Aalm Cold Rolled Steels was the day's best performer, posting a gain of 10 per cent while Prime Insurance was the worst loser, losing 9.89 per cent.

The Chittagong Stock Exchange also ended sharply higher with its All Shares Price Index (CASPI)-soaring 223 points to finish at 18,858 while the Selective Categories Index - CSCX-- rising 128 points to close at 11,318.

Of the issues traded, 231 advanced, 69 declined and 23 issues remained unchanged on the CSE.

The port city bourse traded 33.42 million shares and mutual fund units with turnover value of Tk 730 million.

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