Stocks soar on financial cos

Staff Correspondent | Published: 22:06, May 11,2021

 
 

Dhaka stocks advanced for the fifth trading session on Tuesday with the key index hitting a three-and-half-month high as investors went for buying shares heavily, especially those of financial companies, ahead of Eid holidays.

The stock market will remain closed in May 13-15 on the occasion of Eid-ul-Fitr, one of the biggest religious festivals of the Muslims.

Eid-ul-Fitr will be observed in the country on May 13 or May 14, depending on moon sighting.

The Dhaka Stock Exchange on Tuesday decided to keep the market open today as banks will also remain open.

DSEX, the key index of the DSE, soared by 1.39 per cent, or 78.67 points, to close at 5,724.36 points on Tuesday.

Tuesday’s index was the highest after January 25 when it was at 5,789.92 points.

The DSEX gained 213.34 points in the last five sessions.

The key index started rising from the very beginning of Tuesday’s session and climbed more firmly as the session progressed as investors increased share buying ahead of Eid holidays.

Investors turned their focus mostly to the financial companies as share prices of the companies remained lucrative after their recent fall, market operators said.

They said banks declared better dividends and profits for the financial year 2020.

Average share prices of general insurance, bank, non-bank financial institution, and mutual fund sectors soared by 5.2 per cent, 3.3 per cent, 2 per cent and 1.1 per cent respectively.

EBL Securities in its daily market commentary said, ‘Investors have taken interest in the bank sector due to post-dividend price adjustments as most of the bank stocks were traded at a lucrative level while the hyped-up insurance sector kept investors busy due to buying rush in the sectoral stocks.’

‘As confidence in the market reached new heights, the stock market is being viewed as a better investment option by investors rather than keeping deposits with banks,’ it said.

Among the large capitalised companies, a surge in share prices of BRAC Bank, Grameenphone, City Bank, Prime Bank and IFIC Bank together added 26 points to the DSEX on Tuesday.

Market operators said that the recent rally in share prices also attracted many investors to the market.

The market has gained 560 points in the last 20 trading sessions with just three negative sessions.

Besides, the investors’ worries over the Covid outbreak have waned in recent days amid a decline in infection and death rates.

The government on May 3 extended the Covid restriction period to May 16 but allowed public transports to operate inside cities and districts beginning on Sunday.

Turnover on the DSE advanced to Tk 1,403.35 crore on Tuesday from Tk 1,343.33 crore in the previous session.

Of the 362 scrips traded on the DSE on the day, 218 advanced, 71 declined and 73 remained unchanged.

DS30, a composition of 30 large capitalised companies, gained 1.32 per cent, or 28.76 points, to close at 2,194.75 points on Tuesday.

Shariah index DSES also added 0.82 per cent, or 10.41 points, to settle at 1,271.9 points.

BEXIMCO led the turnover chart with shares worth Tk 120 crore changing hands on the day.

BRAC Bank, National Feed Mills, British American Tobacco, Robi, Square Pharmaceuticals, Beximco Pharmaceuticals, Pioneer Insurance, LankaBangla Finance and City Bank were the other turnover leaders on the day.     

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