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Dhaka stocks gained for the second consecutive session on Tuesday with the benchmark DSEX index crossing 7,000-mark lifted by the strong buying spree from the institutional investors, dealers say.
The investment interests of institutional investors play a significant role in the way stock markets move. Institutional investors include banks, NBFIs, mutual funds, venture capital funds, insurance companies, and pension funds.
The benchmark DSEX index gained over 54 points or 0.78 per cent to settle at 7,049,--its highest since December 7, 2021, when it touched 7,000-mark. It rose 61 points in the previous session.
The Shariah-based DSES index rose 15 points or 1 per cent at 1,495 while the blue-chip comprising DS30 index was up 20 points or 0.77 per cent at 2,626.
Institutional investors pumped funds particularly on state-owned enterprises, which catapulted the turnover to nearing the turnover Tk 2,000 crore after more than four months. It stood at Tk 1,976 crore—the record high since October 7, 2021 when it was Tk 2,497 crore and up almost 33 per cent over the previous session.
“Institutional investors’ participation in trading was significantly higher while the retailers were still on selling mood,” said a broker at a top brokerage firm.
Their investments came just a day ahead of debut trading of Beximco Green Suku bond, he added.
Four state-run companies--Eastern Cables, Titas Gas, National Tubes and Bangladesh Shipping Corporation—hit the upper limit circuits at almost 10 per cent each, making them top gainers of the day.
“Dhaka stocks observed a sharp upturn and equity indices of DSE charged up by increased participation of investors on the bourse,” said the EBL Securities in a note.
“Investors’ optimism on the bourse continued, beating worries of the surge in coronavirus cases in the country, as they believe that economy would not be too affected in the latest wave of the pandemic,” it said.
Though the market observed profit booking sell pressure in the late session, most of the large-cap stocks stood firm position on the trading board supported by the active participation of institutional investors, it added.
The trading was mostly concentrated on fuel and power, engineering and miscellaneous stocks, which made up more than 40 per cent of the total turnover.
The stocks that pulled up the market were Square Pharmaceuticals, Titas, Beximco Pharmaceuticals, BSC, Social Islami Bank Limited, BBS Cables, Brac Bank, RAK Ceramics, IFAD Autos and DESCO. On the other hand, the market draggers were Beacon Pharmaceuticals, Delta Life Insurance, LafargeHolcim Bangladesh, Bangladesh Submarine Cable Company Limited, Fortune Shoes, Meghna Life Insurance and Green Delta Insurance.
The majority of the sectors displayed satisfactory performance, out of which ceramic (6.9 per cent), paper (4.4 per cent), and mutual fund (2.5 per cent) have exerted the most positive returns while life insurance (-2.1 per cent), tannery (-0.7 per cent), and jute (-0.5 per cent) suffered the most corrections.
The majority of the stocks closed in green territory. Out of the 382 issues traded, 189 advanced, 146 declined, and 47 remained unchanged.
The port city bourse, CSE, settled in green terrain. The selected indices (CSCX) and All Share Price Index (CASPI) advanced by 117.4 points and 189.6 points respectively.
