Stocks extend rally to 7th day

Staff Correspondent | Published: 22:57, May 16,2021


Dhaka stocks advanced on Sunday, extending the gaining streak to the seventh session with investors continuing to buy shares, especially those of banks and non-bank financial institutions, as trading resumed after a three-day Eid-ul-Fitr holiday.

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

DSEX, the key index of the Dhaka Stock Exchange, gained 1.08 per cent, or 62.68 points, to close at 5,812.16 points on Sunday.

Sunday’s index was the highest after January 24 when it was at 5,815.54 points.

The DSEX gained 301.8 points in the last seven sessions.

The core index began to rise from the very beginning of Sunday’s session and maintained the momentum until the end of the session as investors continued buying shares amid expectation of better returns, market operators said.

They said that the recent surge in share prices on the market encouraged investors to inject funds in the market.

The market has gained 648.47 points in the last 22 trading sessions with just three negative sessions, recovering Tk 42,041.34 crore in the market capitalisation.

Investors continued buying shares of banks and NBFIs as share prices of the entities remained lucrative after their recent plunges, market operators said.

Besides, banks declared better dividends and profits for the financial year 2020.

Out of the 31 bank scrips traded, 25 advanced, one declined and five remain unchanged while out of the 22 NBFIs traded, 16 advanced, two declined and four remained unchanged.

Average share prices of textile, NBFI, bank and energy sectors advanced by 3.5 per cent, 3.3 per cent, 2.1 per cent and 1.1 per cent respectively.

A surge in share prices of Square Pharmaceuticals, National Bank, Prime Bank, IFIC Bank, Mutual Trust Bank and United Commercial Bank added around 30 points to the DSEX on Sunday.

EBL Securities in its daily market commentary said that the stock market had been on the rise in the last few trading days due to a significant investors’ participation on the bourse.

‘On top of that, the large-cap sectors namely bank and NBFI also positively impacted the market to settle in the green zone.’

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

The government has extended the ongoing restrictions on public movement and overall activities from May 16 midnight to May 23 midnight to contain the spread of Covid-19.

Turnover on the DSE inched down to Tk 1,418.36 crore on Sunday from Tk 1,453.56 crore in the previous session.

Of the 362 scrips traded on the DSE on the day, 231 advanced, 88 declined and 49 remained unchanged.

DS30, a composition of 30 large capitalised companies, added 0.26 per cent, or 5.78 points, to close at 2,192.65 points on Sunday.

Shariah index DSES also added 0.59 per cent, or 7.64 points, to settle at 1,282.78 points.

BEXIMCO led the turnover chart with shares worth Tk 83 crore changing hands on the day.

Saif Powertec, Robi, Summit Power, National Feed Mills, Maksons Spinning Mills, Generation Next, LankaBangla Finance, SS Steel and IFIC Bank were the other turnover leaders on the day.       

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