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Selective low-priced issues attract investors

Turnover crosses Tk 8.0b mark on prime bourse

FE REPORT | June 29, 2022 00:00:00

Stocks posted a marginal gain for the second straight session on Tuesday as the bargain hunters showed buying interest on selective lucrative issues ahead of fiscal year-end.

The market opened higher and the positive trend sustained until the end of the session amid volatility, ultimately ending over 22 points higher.

DSEX, the key index of the Dhaka Stock Exchange (DSE), went up by 22.25 points or 0.35 per cent to settle at 6,342. The key index added over 41 points in the past two days.

Two other indices also ended marginally higher. The DS30 Index, comprising blue chips, advanced 9.37 points to finish at 2,294 and the DSE Shariah Index (DSES) rose 4.84 points to close at 1,385.

Turnover, the crucial indicator of the market, crossed Tk 8.0 billion-mark after five days and amounted to Tk 8.18 billion, which was 17 per cent higher than the previous day's tally of Tk 7.0 billion.

Market operators said the bargain hunters took the opportunity of buying stocks at lucrative prices after the recent market erosion.

The participation of investors has increased as a section of investors put fresh funds on stocks to get tax benefits just ahead of ending the fiscal year, said a merchant banker.

However, he said some investors remained cautious amid rising trend of coronavirus cases and the persisting macroeconomic worries.

The investors put fresh bets on sector-wise issues as they find some stocks at lucrative prices, said International Leasing Securities.

"Investors increased their participation in the market to grab the opportunity of tax benefit on capital market investment as the fiscal year 2021-22 ends two days later," said the stockbroker.

EBL Securities said stocks edged higher due to buying binge, propelled by across-the-board participation as investors took advantage of selective low-priced issues.

Despite the market settled in the green, volatility continued, as investors' concerns loomed around rising Covid-19 infections and weak macroeconomic cues in the country, the stockbroker said.

The investors' activities were mostly focused on the textile sector, capturing 17.5 per cent of the day's total turnover, followed by engineering with 11 per cent and pharmaceuticals 10 per cent.

Major sectors posted gains with engineering seeing the highest gain of 0.80 per cent, followed by financial institutions with 0.70 per cent, power 0.60 per cent, banking 0.20 per cent, food 0.10 per cent and telecom 0.10 per cent.

Gainers took a strong lead over the losers as out of 382 issues traded, 199 advanced, 133 declined and 50 remained unchanged on the DSE trading floor.

Shinepukur Ceramics was the most-traded stock with shares worth Tk 368 million changing hands, closely followed by Beximco (Tk 291 million), Fu-Wang Food (Tk 226 million), BD Finance (Tk 225 million) and Delta Life Insurance (Tk 176 million).

Newly listed Meghna Insurance was the top gainer, posting a 9.94 per cent gain while IPDC Finance was the day's worst loser, losing 2.0 per cent.

The Chittagong Stock Exchange (CSE) also saw modest rise with the CSE All Share Price Index - CASPI -gaining 46 points to settle at 18,663 and the Selective Categories Index - CSCX -rising 28 points to close at 11,187.

Of the issues traded, 160 advanced, 97 declined and 36 issues remained unchanged on the CSE.

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