DSEX nears 7,300-mark for the first time

Dhaka stocks gained for the second straight session on Tuesday with the benchmark DSEX neared the 7,300-mark for the first time.

The market began on a bullish note in the morning led by financial stocks and the spirit continued until the close.

The benchmark DSEX index added over 45 points or 0.62 per cent to settle at 7,297, which is an all-time high since September 21 when it was 7,258.

The Shariah-based DSES index was marginally up over 6 points or 0.41 per cent to 1,585 and the blue-chip comprising DS30 index gained over 15 points or 0.58 per cent to 2,691.

Pragmatists believed that the euphoria was carrying the stock prices into the positive territories, as the market was flush with liquidity. “With no place to park the money, given the dismal returns provided by banks and savings tools, investors’ rush to the stock market is understandable,” said a top stockbroker.

The sentiment remained relatively buoyant in recent months due to several factors, including falling interest rates, according to stockbrokers.

Recently, the market saw a record volume of trade as some expatriates and black money holders started to invest in stocks after the undisclosed money investment opportunity given in the current budget, they said.

“Some stocks are currently trading at attractive valuations, particularly financials,” said an analyst at a top brokerage firm. Most market participants were optimistic that there still was quite room for the stocks to rise, he added.

The recent lowering interest rates on savings tools also fuelled the already-bullish market, said the analyst.

Last week, the government lowered the interest rates on savings certificates to maintain a logical difference with the interest rate on bank deposits.

People have so far been rushing to invest in savings certificates as an alternative investment amid the pandemic due to the higher return as the interest rate on bank deposits was hovering around 6 per cent.

The investors were active with the stock purchases as the volume of trade rose significantly. The DSE turnover stood at Tk 2,135 crore, more than 8 per cent over the previous session.

Deshbandhu Polymer—a manufacturer of PP woven bags—stole the show ahead of its board meeting scheduled for Thursday.  Its share rose 8.67 per cent to Tk 23.8—the top gainer of the day. The other top gainers included Pacific Denims, Saiham Textile, Evince Textiles, Summit Alliance Port, Desh Garments and Simtex Industries.

The Covid-hit Monno Ceramic Industries, which resumed its partial operation on September 9, was the worst loser falling more than 5 per cent. Orion Pharmaceuticals attracted the most investors as it was the most traded stock.

About four months back in a filing with the Dhaka Stock Exchange, the local drug maker had said it contacted the Russian Direct Investment Fund to transfer the required technology to produce the Covid-19 vaccine at its plant.