Dhaka stocks extend rally to 8th day

Staff Correspondent | Published: 22:53, Apr 22,2021

 
 

Dhaka stocks advanced on Thursday, stretching the gaining streak to the eighth day as investors continued buying shares.

Market operators said there were also profit-taking sales on the market.

DSEX, the key index of the Dhaka Stock Exchange, added 0.21 per cent, or 11.8 points, to close at 5,435.03 points on Thursday.

The DSEX has gained 269 points in the last eight trading sessions.

Investors were active on both sides of the trading fence as a section of investors booked profits while many others took position amid a rally, market operators said.

Share market analyst and Dhaka University honorary professor Abu Ahmed told New Age that the market was rising as share prices of most of the companies had declined significantly before the eight day rise.

However, gamblers were also active on the market, he said.

Investors ignored companies’ fundamental issues and rushed for short-term gains, Abu Ahmed said.

So, the surge appears to be unsustainable, he said.

IDLC Investment Limited managing director Md Moniruzzaman said that the market continued gaining as it had plunged earlier.

Some investors preferred the stock market to bank deposits as an investment tool  due to the possibility of better returns, he said.

Investors were mostly active on insurance companies as the sector registered 32 per cent of the day’s total turnover.

Out of the 48 insurance companies traded on Thursday, share prices of 35 advanced, 11 declined and two remained unchanged.

Average share prices of general insurance, mutual fund, non-bank financial institution and bank sectors advanced by 1.3 per cent, 1.2 per cent, 0.4 per cent and 0.2 per cent respectively.

EBL Securities in its daily market commentary said, ‘ The market slowed a bit in the last two sessions as most of the investors favoured profit-taking since the latest bull run took many of the stocks at a lucrative level.’

‘However, many investors turned their focus to upcoming financial disclosures as they presumed that impact on businesses will be less critical due to the continuation of industrial activities amidst the lockdown,’ it said.

The government imposed restrictions on public movement and business activities across the country in April 14-21 to check the fresh wave of Covid outbreak. The restrictions have been extended till April 28.

However, banks and stock exchanges have been kept open with shortened working hours during the restriction period that eased restriction-related worries among investors, market operators said.

Turnover on the DSE advanced to Tk 883.29 crore on Thursday from Tk 776.67 crore in the previous session.

Among the large capitalised companies, share prices of BRAC Bank, LankaBangla Finance, Square Pharmaceuticals and LafargeHolcim Bangladesh advanced on Thursday.

Of the 354 scrips traded on the DSE on Thursday, 143 advanced, 135 declined and 75 remained unchanged. DS30, a composition of 30 large capitalised companies, gained by 0.19 per cent, or 4.05 points, to close at 2,087.55 points on Thursday.

Shariah index DSES also increased by 0.31 per cent, or 3.9 points, to settle at 1,237.39 points.

BEXIMCO led the turnover chart with shares worth Tk 154.15 crore changing hands on the day.

Beximco Pharmaceuticals, LankaBangla Finance, BD Finance, Robi, British American Tobacco Company, Asia Pacific Insurance, LafargeHolcim Bangladesh, Purabi General Insurance Company and Square Pharmaceuticals were the other turnover leaders on the day.

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