Stocks soar as banks, NBFIs surge

Staff Correspondent | Published: 23:03, May 05,2021

 
 

Dhaka stocks soared on Wednesday and added to the previous day’s gains as investors went for heavy buying, especially shares of banks and non-bank financial institutions, amid some improvements in the Covid situation.

DSEX, the key index of the Dhaka Stock Exchange, soared by 0.96 per cent, or 53.34 points, to close at 5,588.83 points on Wednesday after gaining 24 points in the previous session.

The key index started to gain from the beginning of the day and continued the momentum until the end of the session as investors went for heavy buying, especially shares of banks, non-bank financial institutions and mutual funds.

Share prices of many banks and NBFIs were trading below Tk 10 which might have attracted many investors.

EBL Securities in its daily market commentary said, ‘The rally was aggravated by buoyancy in the giant bank and NBFI sectors based on an increased earning expectation of the companies.’

‘Moreover, the capital market has turned into a lucrative investment platform for investors because of growing confidence and relentless market development regulatory measures. The non-life insurance stocks observed marginal correction as the stocks were traded at a very high level,’ it said.

Among the large capitalised companies, City Bank, IFIC Bank, United Commercial Bank, Orion Pharmaceuticals and National Bank contributed most to the surge on Wednesday.

Share prices of Orion Pharmaceuticals hit the roof on Wednesday as the media reported that the company had initiated a move to manufacture the Russian Covid vaccine in the country.

The investors’ worries over the fresh wave of the Covid outbreak had begun to wane as rates of infection and fatality witnessed a downward trend in recent days, market operators said.

They also said that many companies had reported better financial growth during the third quarter (January-March) despite the coronavirus fallout, which had raised the investors’ confidence.

The market has gained 424 points in the last 17 trading sessions with just three negative sessions.

Average share prices of mutual fund, NBFI and textile sectors advanced by 6.1 per cent, 3.7 per cent, 3.2 per cent and 0.7 per cent respectively.

General insurance dropped by 3.4 per cent as the investors went for profit booking after the recent rally.

Turnover on the DSE advanced to Tk 1,398.51 crore on Wednesday from Tk 1,356.1 crore in the previous session.

Of the 357 scrips traded on the DSE on the day, 203 advanced, 100 declined and 54 remained unchanged.

DS30, a composition of 30 large capitalised companies, advanced by 0.69 per cent, or 13.38 points, to close at 2,132.1 points on Wednesday.

Shariah index DSES also added 0.05 per cent, or 0.68 points, to settle at 1,249.92 points.

BEXIMCO led the turnover chart with shares worth Tk 148.3 crore changing hands on the day.

LankaBangla Finance, National Feed Mills, Robi, Pioneer Insurance, Sandhani Life Insurance, BD Finance, Maksons Spinning Mills, Rupali Life Insurance and LafargeHolcim Bangladesh were the other turnover leaders on the day.

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