Stocks rise for 8th day as banks keep surging

Staff Correspondent | Published: 22:49, May 17,2021


Dhaka stocks increased for the eighth session on Monday despite a fall in share prices of most of the companies traded on the day, as investors continued buying shares, especially those of banks and insurance companies.

DSEX, the key index of the Dhaka Stock Exchange, gained 0.46 per cent, or 26.92 points, to close at 5,840.08 points on Monday.

Monday’s index was the highest after January 17 when it was at 5,850.43 points.

The DSEX gained 329 points in the last eight sessions.

After a negative movement at the beginning of Monday’s session, the core index moved upward to finish the session with a gain as investors continued buying shares amid optimism, 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 675 points in the last 23 trading sessions with just three negative sessions, recovering Tk 45,401 crore in the market capitalisation.

However, share prices of most of the companies declined on Monday as many investors went for profit booking after a continued surge in share prices.

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

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

Out of the 31 bank scrips traded, 27 advanced, two declined and two remain unchanged.

Insurance companies also got the investors’ attention on Monday.

The Bangladesh Securities and Exchange Commission has asked all market intermediaries, bourses and listed companies to provide health and life insurance to their employees.

Average share prices of bank and insurance sectors advanced by 2.4 per cent and 1.7 per cent respectively.

EBL Securities in its daily market commentary said that beating worries over the Covid outbreak, the investors’ buying appetite on the bourse continued in the large capitalised bank sector.

‘The life insurance stocks also gained the investors’ attention as the BSEC has directed to provide health and life insurance to the people related to the capital market,’ it said.

A surge in share prices of British American Tobacco, Prime Bank, IFIC Bank, Islami Bank and Square Pharmaceuticals added around 22 points to the DSEX on Monday.

Besides, the investors’ worries over the Covid outbreak continued waning amid a decline in infection and fatality 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 advanced to Tk 1,534.62 crore on Monday from Tk 1,418.36 crore in the previous session.

Monday’s turnover was highest after January 25 when it was at Tk 1,585.22 crore.

Of the 362 scrips traded on the DSE on the day, 142 advanced, 175 declined and 48 remained unchanged.

DS30, a composition of 30 large capitalised companies, added 0.3 per cent, or 6.63 points, to close at 2,199.29 points on Monday.

Shariah index DSES also added 0.18 per cent, or 2.3 points, to settle at 1,285.09 points.

BEXIMCO led the turnover chart with shares worth Tk 113.14 crore changing hands on the day.

Robi, Saif Powertec, Prime Bank, IFIC Bank, British American Tobacco, National Feed Mills, City Bank, LankaBangla Finance and SS Steel were the other turnover leaders on the day.

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