Stocks up in eighth consecutive session
DSE turnover is above Tk670 crore for the second day in a row
Stocks rally sustained for the eighth consecutive session amid increased participation of investors on Tuesday.
Analysts thanked the expansionary monetary policy declared by the central bank expecting that the increased money flow would help revive the economy from the Covid-19 fallout.
The Bangladesh Bank has set a target for moderate inflation, higher domestic and private sector credit growth and lower public credit growth, meant for supportive money flow to the economy. Investors have appreciated the bank rate reduction by 100 basis points.
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Moreover, investors expect that the banks and financial institutions would invest in the capital market to get higher profits in the coming days, narrated EBL Securities Research in their daily market commentary.
DSEX – the key benchmark at the Dhaka Stock Exchange (DSE) – gained 0.64 percent to close at 4,299 on Tuesday. In the first session after Eid-Ul-Azha holidays, the index gained 1.36 percent on Monday.
Turnover at the premier bourse has increased significantly after Eid with over Tk670 crore in each of the two sessions.
The stock indices showed shaky in the early part of Tuesday session displaying slight correction but diverted its direction soon after some profit booking period as investors continued buying fresh stocks in the undervalued stocks, said EBL Securities.
However, investors' attention was mostly concentrated on pharmaceuticals and chemicals stocks which contributed over 20 percent of the day's trading turnover at the DSE; followed by general insurance and engineering sectors with contributing 17.9 and 9.8 percent of turnover respectively.
Among all the sectors, non-banking financial institutions gained maximum market capitalisation of 4.6 percent, while general insurance and cement stocks were at the second spot in gaining table jointly.
On the other hand, life insurance, IT and paper and printing sectors lost around 1.1 percent of their respective market capitalisation.
Out of 354 issues traded at the DSE, 147 advanced, 116 declined and the price of 91 remained unchanged.
At the Chittagong Stock Exchange, 98 advanced, 86 declined and 70 scrips were unchanged.
Turnover at the port city bourse increased to Tk17 crore from less than Tk14 crore on Monday.
CSCX, the key benchmark there, has gained 0.51 percent on Tuesday to close at 7,385.
Despite CSE's blue-chip index CSE 30 gained less 0.22 percent, its peer at the Dhaka bourse outperformed the broad-based index, reflecting more demand for selective stocks at Dhaka.
