Stocks rally on institutional buying, turnover rises 50%

Dhaka stocks rallied on Tuesday with a significant increase in turnover due to institutional buying.

However, most retailers chose to remain on the sidelines as they remained unconvinced about the market’s sustainability, dealers say.

The benchmark DSEX index added over 70 points or 1 per cent to settle at 7,048, extending its gaining streak for the third straight session. The rally was led mainly by financial institutions, cement, textile sectors and ceramics.

The Shariah-based DSES index gained 15 points or 1 per cent to 1,480 while the blue-chip comprising DS30 index rose 25 points 0.97 per cent to 2,660.

The DSE turnover stood at Tk 1,331 crore, a significant jump of over 50 per cent over the previous session. The banking sector accounted for almost 20 per cent of the total turnover.

Khan Brothers PP Woven Bag Industries was the top gainer hitting the upper limit circuit breaker at 10 per cent without any fundamental reason.

It was followed by Sena Kalyan Insurance operated by Bangladesh Armed Forces that rallied for the 23rd straight session soaring 9.97 per cent to over Tk 87. Its face value is Tk 10 and debuted on November 7.

Beximco Ltd was the most traded company with shares worth Tk 1,30 crore changed hands, accounting for nearly 10 per cent of the total trade. It was followed by One Bank, GSP Finance, Power Grid, First Security Bank, Paramount Textile, Delta Life Insurance and Active Fine Chemicals.

No decision taken in meeting on
stock market

The meeting called by the finance ministry to discuss about the current market situation ended without any decision.

“No decision was made in the meeting. However, the meeting will be called again this month,” said  Mafiz Uddin Ahmed, the convener of the stock market monitoring committee and additional secretary at financial institutions division told reporters after the meeting on Tuesday.

Representatives from Bangladesh Bank, Bangladesh Securities and Exchange Commission (BSEC), National Board of Revenue (NBR), and Investment Corporation of Bangladesh (ICB) attended the meeting.

The DSEX gained sharply 89 points spurred by the news of the meeting as the investors expected something positive outcome on some policy issues from the meeting.

The meeting was called between the two regulators and relevant agencies about the unclaimed dividends and stock market exposure ceiling for banks and NBFIs.

Last week, the market witnessed extreme volatility over the conflicting news on policy issues.

After the meeting, the BSEC said that the BB would also allow banks to transfer unclaimed dividends to the market stabilisation fund after bringing some amendments to the capital market stabilisation fund rules.

The BB and BSEC have been involved in a long dispute over the corporate governance code, Banking Companies Act, 1991 and the Financial Institutions Act, 1993.