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Stocks extend gains on positive sentiment

DSEX adds 111 points in four sessions

FE REPORT | August 22, 2022 00:00:00

The stock market extended the winning streak for a fourth straight session on Sunday as buoyant investors renewed their appetite for sector-wise stocks anticipating positive momentum ahead.

The market opened higher and the positive trend sustained till the end of the session amid modest volatility.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), finally settled 18.02 points or 0.29 per cent higher at 6,259.46. The DSEX added 111 points in the past four consecutive sessions.

Market operators said the investors gained some confidence amid declining trend of fuel price on the global market as well as the slight stability in the foreign exchange market, which came after the central bank stepped in.

Bangladesh Bank tightened the spread between the buying and selling rates of the US dollar to curb the currency volatility.

The market participants reacted positively to the recent initiatives from the central bank in tightening the dollar spread to manage the ongoing foreign exchange volatility, said a merchant banker.

He noted that general investors continued to buy shares amid hopes that the market would not fall further due to the regulatory assurance that the 'floor price' would remain in place until further order.

The investors got a sign of relief due to the Bangladesh Bank's attempt to curb the dollar price volatility along with the government's announcement to adjust the fuel prices in line with the global market, said EBL Securities.

According to International Leasing Securities, the stock market remained bullish as the investors are more confident to put fresh bets anticipating positive momentum ahead.

Bangladesh is contemplating import of Russian oil via a third country that will decrease the fuel prices as well as inflation in the country.

Moreover, the central bank tightened the spread between the buying and selling rates of the US dollar to curb the currency volatility.

"All the measures taken have tempted the investors to remain active on the trading floor," said the stockbroker.

Two other DSE indices also edged higher. The DS30 index, comprising blue chips, advanced 6.10 points to finish at 2,226 and the DSE Shariah Index (DSES) gained 6.25 points to close at 1,372.

Turnover, another important indicator of the market, however, dropped to Tk 10.58 billion, which was Tk 8.80 per cent lower than the previous day's tally of Tk 11.60 billion.

The textile sector kept its dominance on the turnover list, capturing 19.40 per cent of the day's total turnover, followed by miscellaneous sector (17.50 per cent) and engineering (10.30 per cent).

Most of the major sectors posted gains with the cement sector booking the highest gain of 1.90 per cent, followed by food (0.79 per cent), (textile 0.70 per cent), pharmaceutical (0.30 per cent), engineering (0.20 per cent), power (0.04 per cent) and telecoms (0.02 per cent).

On the other hand, general insurance, financial institutions and banking sectors lost 0.60 per cent, 0.30 per cent and 0.10 per cent respectively.

Gainers took a modest lead over the losers, as out of 381 issues traded, 136 advanced, 143 declined and 102 issues remained unchanged on the DSE trading floor.

Beximco was the most-traded stock with shares worth Tk 961 million changing hands, followed by Bangladesh Shipping Corporation (Tk 540 million), LafargeHolcim (Tk 434 million), Malek Spinning Mills (Tk 258 million) and Orion Infusion (Tk 208 million).

Monno Fabrics was the day's top gainer, advancing 10 per cent while Bangladesh Industrial Finance Company was the day's worst loser, shedding 6.72 per cent.

The Chittagong Stock Exchange (CSE) also edged higher, with the CSE All Share Price Index (CASPI), gaining 20 points to settle at 18,390 and its Selective Categories Index (CSCX) rising 12 points to close at 11,018.

Of the issues traded, 111 declined, 101 advanced and 85 issues remained unchanged on the CSE trading floor.

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