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Textile sector issues attract investors most

The sector's market-cap rises 2.50pc, capturing 23pc turnover

FE REPORT | July 26, 2022 00:00:00

Textile issues attracted the investors most on Monday, capturing 23 per cent of the day's total turnover value with generating the highest return of 2.50 per cent.

The investors' activity was mostly focused on the textile sector, capturing 23 per cent of the day's total turnover. The total turnover was Tk 6.40 billion on the Dhaka Stock Exchange Monday.

The textile sector also posted the highest return of 2.50 per cent as 49 issues of the sector closed higher, six lower and three remained unchanged, out of 58 textile issues.

Seven issues from the sector featured in the day's top 10 gainers' list. Matin Spinning Mills posted the highest gain, rising 9.83 per cent to close at Tk 79.30 each on Monday.

Some of the textile issues continued to rise with increased turnover value as they announced to increase production capacity, said a merchant banker.

Matin Spinning's stock price rose about 16 per cent in the past four days after the news that the company is going to full commercial operation of special yarn unit (production capacity by 10 ton per day) of the company will commence from 1st August 2022, he said.

The record exports news in the just concluded fiscal year also prompted investors to put fresh funds on textile issues, he said.

"Textile stocks got investors' attention further as exports soared and the investors expected higher dividends as the textile companies' year-end ended in June," he added.

Exports from Bangladesh hit an all-time high of $52.08 billion in the just-concluded fiscal year where apparel shipment accounts for about 85 per cent exports earnings.

Zaheen Spinning was the second highest gainer, posting a 9.01 per cent gain to close at Tk 13.30 on Monday.

Zaheen Spinning has resumed production in full swing after repairing damages caused by two massive fires at its factory in Narayanganj, on the outskirts of the capital.

The company announced that it started the factory at full capacity on 16 July, according to a filing with the DSE.

Monno Fabrics was the third highest gainer, rising 6.86 per cent to close at Tk 24.90 on Monday.

Monno Fabrics returned to the bourses' main market on June 13, last year after staying in the over-the-counter (OTC) market since 2009. The company was listed on the capital market in 1996.

KDS Accessories rose 6.78 per cent to close at Tk 78.80 on Monday.

Safko Spinning Mills stock also jumped 6.10 per cent, followed by Global heavy Chemicals with 5.50 per cent gain to close at Tk 36.40.

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