Stocks climb sharply for 3rd straight day

Dhaka stocks gained sharply for the third straight day on Tuesday amid higher volume of trade.

The benchmark DSEX index rose 85 points or 1.38 per cent to settle at 6,249—its highest since July 17 when it was 6,304. In three days, it accumulated 268 points.

The DSE turnover stood at more than Tk 1,183 crore, which is over 28 per cent higher than the previous session and the highest since May 9, 2022 when it was Tk 1,208 crore.

Along with the key index, two junior indices also ended higher. The blue-chip index DS30 was up 15 points or 1.13 per cent to 2,234 while the DSES index, which represents Shariah-based companies, added 15 points or 1.36 per cent to 1,362.

The aforesaid rally was attributed to the floor price reintroduced by the securities regulator on Thursday to prevent the free fall of the market caused by the economic uncertainty.

During the trading hours, bullish sentiment hit the roof as massive buying was seen across the board.

Individually, Beximco positively contributed 8.13 points, Beximco Pharmaceuticals 5.33 points, Walton Hi-Tech Industries 3.43 points, Delta Life Insurance 3.16 points, Square Pharmaceuticals 2.56 points and Grameenphone 2.23 points to the key index.

“Dhaka stocks extended their upward momentum for the third consecutive session, with the key index crossing the 6200 mark riding on the favorable regulatory interventions and increased market participation across the bourse,” said the EBL Securities in a note.

“The regulator’s interventions regarding reintroducing the floor price mechanism and persuading the listed firms to inject fresh funds from their own portfolios have tamed the concurrent pessimism of the investors as well as restored their confidence on the trading floor,” it said.

Moreover, the recent rise in remittance inflow and declining imports are providing a breathing space to the ongoing stress on the country’s foreign exchange reserve, it added.

Almost all the sectors displayed positive returns, out of which life insurance (3.2 per cent), services (2.9 per cent) and paper (2.5 per cent) exerted the highest returns on the bourse while food (0.04 per cent) exerted a minuscule correction.

Out of the 386 issues traded, 290 advanced, 36 declined, and 60 remained unchanged.

The port city bourse, CSE, also, settled in green terrain. The selected indices (CSCX) and All Share Price Index (CASPI) have advanced by 123.7 and 206.1 points respectively.