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Stocks keep gaining as bank issues surge

FE Report | September 30, 2019 00:00:00

Stocks posted marginal gain for the second straight session on Sunday as investors showed their appetite on banking sector shares.

The market opened on positive note and the key index rose more than 29 points within first 30 minutes of trading, but rest of the session shed most of the initial gains.

Finally, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 7.26 points or 0.14 per cent to settle at 4,975.

Market analysts said banking stocks like BRAC Bank, Eastern Bank, Al-Arafah Islami Bank, Mutual Trust Bank, Trust Bank and Square Pharma jacked the index up.

Despite witnessing profit booking, last hour buying pressure on large scrips like Square Pharma, BRAC Bank, Bangladesh Submarine Cable led the upward movement of index, UCB Capital Mismanagement said.

An analyst, however, said despite the market ended marginally higher, many investors remained worried about the recent volatility of the market and maintained cautious approach.

The DSE Shariah Index also gained 1.01 points to close at 1,149. However, the DS30 index, comprising blue chips, saw a fractional loss of 0.98 point to finish at 1,767.

Turnover, a crucial indicator of the market, fell to Tk 3.84 billion, which was 6.80 per cent lower than the previous day's Tk 4.12 billion.

Investors' participation fell further as they adopted 'wait and see' approach ahead of dividend declaration, commented International Leasing Securities.

EBL Securities said investors' appetite on the banking sector's lucrative price pushed the index upward.

The stockbroker, however, noted that investors still seemed to be skeptical due to recent market volatility which kept investors at bay.

The heavyweight banking sector posted the highest gain of 1.10 per cent with prices of 23 banks closed higher out of 30 listed banks.

The port city's bourse, the Chittagong Stock Exchange, also ended marginally higher with its All Shares Price Index (CAPSI) -- CASPI-gaining 25 points to close at 15,109 and the Selective Categories Index - CSCX -advancing 15 points to finish at 9,177.

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