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Stocks extend rally with rising turnover

Shipping Corporation leads DSE turnover chart again


FE REPORT | January 18, 2022 00:00:00


Stocks extended their rally on Monday with rising turnover, as the buoyant investors continued pouring funds in sector-specific issues, shrugging off worries of the rising virus cases.

DSEX, the prime index of Dhaka Stock Exchange (DSE), went up by 35.67 points to settle at 7,055. The core index added more than 59 points in the past three consecutive sessions.

Two other indices also edged higher. The DSE 30 Index, comprising blue chips, rose 9.48 points to finish at 2,607 and the DSE Shariah Index (DSES) advanced 3.0 points to close at 1,505.

Turnover, a crucial indicator of the market, crossed Tk 16 billion-mark and amounted to Tk 16.85 billion, which was 12 per cent higher than the previous day's tally of Tk 15.06 billion.

However, prices of Beximco Green-Sukuk continued to decline and closed at Tk 91.50 on Monday, losing further by 3.68 per cent over the previous day, the third day of debut, against face value of Tk 100 each.

Market analysts said stocks extended their rally as some investors continued to bet in sector-wise large-cap stocks despite rising coronavirous cases in the country.

Five large-cap stocks such as Robi, Beximco, Bangladesh Shipping Corporation, Orion Pharma and Bangladesh Steel Re-rolling Mills jointly accounted for 30 points rise of the DSEX, according to amarstock.com, a market data analyst.

Some institutional investors were active in the market, taking the market turnover above Tk 16 billion further, according to a stockbroker.

Most of the general investors, however, remained on the sidelines owing to worries over the adverse impact of the new coronavirus variant on the country, he said.

The investors optimistic about the economy are betting on stocks although the pandemic is getting worse again with the rising cases of infections caused by the new coronavirus variant Omicron, said a merchant banker.

He noted that investors believe the economy will not get affected this time the way it was hit earlier, he said.

According to EBL Securities, the buoyant investors showed their buying appetite in a few sector-specific issues ahead of the forthcoming earning declarations.

Major sectors showed mixed performances with the telecom sector posting the highest gain of 0.80 per cent, followed by Pharma (0.40 per cent), banking (0.40 per cent) and engineering (0.10 per cent).

On the other hand, power, financial institutions and food sectors lost 0.70 per cent, 0.30 per cent and 0.20 per cent respectively.

Gainers took a modest lead over the losers, as out of 379 issues traded, 173 advanced, 152 declined and 54 issues remained unchanged on the DSE trading floor.

Bangladesh Spinning Corporation was the most traded stock with shares worth Tk 1.31 billion changing hands, closely followed by Saif Powertec (Tk 1.0 billion), Beximco (Tk 900 million), Orion Pharma (759 million) and Power Grid Company (Tk 550 million).

The newly listed Union Insurance was the day's top gainer, posting a 10 per cent rise while Lovello Ice Cream was the day's worst loser, losing 6.98 per cent.

The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index - CASPI -gaining 83 points to settle at 20,650 and the Selective Categories Index - CSCX-advancing 50 points to close at 12,404.

Of the issues traded, 141 advanced, 124 declined and 35 remained unchanged on the CSE.

The port-city bourse traded 11.54 million shares and mutual fund units with a turnover value of Tk 452 million.

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