Home ›› 02 Aug 2022 ›› Stock
Dhaka stocks gained for the second straight day on Monday as the indices followed the upward trajectory amid improved market turnover.
The market rebounded as investors continued to react positively to the floor price reintroduced by the securities regulator.
The DSE turnover stood at more than Tk 921 crore, which is over 62 per cent higher than the previous session and the highest since July 5, 2022 when it was Tk 960 crore.
At the end of the day, the benchmark DSEX index rose 30 points or 0.48 per cent to settle at 6,163. In two days, it accumulated 183 points.
Two other indices also closed in the positive territory. The blue-chip index DS30 was up 10 points or 0.48 per cent to 2,204 while the DSES index, which represents Shariah-based companies, added 7 points or 0.48 per cent to 1,347.
Most of the large-cap sectors posted positive performance. NBFI booked the highest gain of 1.15 per cent followed by telecommunication (+0.80 per cent), pharmaceutical (+0.43 per cent), engineering (+0.41 per cent), fuel & power (+0.41 per cent), bank (+0.17 per cent), and food & allied (-0.22 per cent), respectively.
“The equity indices of Dhaka bourse extended its winning streak riding on the restored investor confidence from the re-introduction of floor prices and increased market participations across-the-bourse,” said the EBL Securities in a note.
The market carried on its upward momentum right from the start of the trading session as bargain hunters continued to look for beat-down stocks resulting from the recent price erosions due to the current macroeconomic tensions, it said.
However, the morning optimism faded a bit as some investors perceived it as an opportunity to offload their holdings. Besides, the recent announcements from Bangladesh Bank about declining LC opening and a two-year high remittance inflow in July have somewhat reduced the stress on the country’s foreign exchange reserves and helped to tame the investors' pessimism, it added.
On Thursday, Bangladesh Securities and Exchange Commission had reintroduced floor price to prevent a continuous downward spiral of stock prices, which went into effect on Sunday.
As the indices went into freefall, the regulator intervened by issuing the new temporary norms to curb the market volatility. The regulator reintroduced the floor price under which the average closing prices of any listed security over the preceding five days would be set as its floor price. If prices drop below the five-day average, it would automatically trigger a circuit breaker for an individual stock.
In addition to the increase in the index, transactions also increased by 62 per cent on this day compared to the previous day.
Beximco was the most actively traded stock, with shares worth Tk 44 crore trading hands. Fortune Shoes, Sonali Paper & Board Mills, Intraco Refueling Station, and Square Textile were the next most active stock movers.
The port city bourse, CSE, also, settled in green terrain. The selected indices (CSCX) and All Share Price Index (CASPI) have advanced by 81.3 and 136.0 points respectively.
