Banks, NBFIs keep Dhaka stocks afloat

Staff Correspondent | Published: 22:48, May 19,2021

 
 

Dhaka stocks advanced on Wednesday despite a fall in share prices of most of the companies traded on the day as a section of investors went for buying shares, especially those of banks and non-bank financial institutions.

DSEX, the key index of the Dhaka Stock Exchange, gained 0.18 per cent, or 43.9 points, to close at 5,829.23 points on Wednesday after losing 10.85 points in the previous session.

The core index started surging from the beginning of Wednesday’s session and maintained the momentum till the end of the session as investors went for share buying, especially those of banks and NBFIs, market operators said.

Share prices of all the 31 banks traded advanced while out of the 22 NBFIs traded, 17 advanced, one declined and four remained unchanged on Wednesday.

Investors have turned their focus to the financial companies as share prices of the entities remained low after their recent plunges, they said.

Average share prices of bank and NBFI sectors soared by 2.9 per cent and 2.6 per cent respectively.

EBL Securities in its daily market commentary said, ‘The rise in the core index was driven by the increase in the bank and NBFI stocks, as investors have regained their confidence in the ailing financial companies based on earnings surprises.’

‘Besides, market participants reacted positively to the media report of corporate tax reduction to 22.5 per cent in the budget for 2022 for all listed production-oriented companies.’

Among the large capitalised companies, a surge in share prices of BEXIMCO, Southeast Bank, NCC Bank, LankaBangla Finance, Eastern Bank, National Bank, and Dhaka Bank contributed most to the rally on Wednesday.

The DSEX has gained 709 points in the last 25 trading sessions with just four negative sessions.

The investors’ worries over the Covid outbreak continued waning amid a decline in infection and fatality rates.

Turnover on the DSE advanced to Tk 2,099.05 crore on Wednesday from Tk 1,719.63 crore in the previous session.

Wednesday’s turnover was highest after January 17 when it was at Tk 2,384.87 crore.

Of the 362 scrips traded on the DSE on the day, 132 advanced, 176 declined and 56 remained unchanged.

DS30, a composition of 30 large capitalised companies, added 0.28 per cent, or 6.2 points, to close at 2,201.00 points on Wednesday.

Shariah index DSES also gained 0.09 per cent, or 1.27 points, to settle at 1,282.4 points.

BEXIMCO led the turnover chart with shares worth Tk 175.93 crore changing hands on the day.

Prime Bank, LankaBangla Finance, Saif Powertec, NRBC Bank, British American Tobacco, Robi, GBB Power, National Feed Mills, and NCC Bank were the other turnover leaders on the day.             

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