DSEX up 50.68 points

The DSEX, the key index of the Dhaka Stock Exchange (DSE) was up by 0.82 percent or 50.68 points on Tuesday as investors were active on both sides of the trading fence, while buyers dominated the market throughout the session.

Turnover increased by 60.55 percent to TK1, 035 crore. The textile sector dominated the turnover chart, covering 21.24 percent of the total turnover.

The market was in a bearish mood last week, riding on the sudden hike in fuel prices that exacerbated the current inflationary pressure.

However, the recent initiative from Bangladesh Bank in setting the spread between buying and selling rates of US dollars at Taka 1 in its attempt to manage the ongoing forex volatility along with the recent decline in energy prices in the global markets has somewhat tamed the investors’ pessimism.

EBL Securities in its daily market commentary said the equity indices of the Dhaka Bourse continued their upward momentum for the second consecutive session, propelled by increased market participation and across-the-bourse buying behavior of investors after the market rebounded from its continuous losing spree in the last week.

According to UCB Stock Brokerage Ltd’s daily market commentary, the cement and textile sectors closed positively, while the food and allied, bank and telecommunications sectors experienced corrections.

Out of the 386 issues traded, 237 advanced, 42 declined and 107 remained unchanged on the Dhaka Bourse.

At the day’s end, the DSES and DS30 added 10.44 points and 13.72 points respectively to their previous day’s level.

On the sectoral front, textile (21.3 per cent) issues exerted the highest turnover followed by miscellaneous (13.6 per cent) and Pharma (8.8 per cent) stocks.

Most of the sectors displayed positive returns, out of which service (5.5 per cent), cement (2.8 per cent) and textile (2.6 per cent) exerted the highest returns on the bourse on the day, while food (-0.3 per cent), banks (-0.2 per cent) and telecom (-0.04 per cent) exerted some corrections.

Market capitalization reached Tk5, 06,969 witnessing a rise of 0.45 percent on the day. Orion Infusion was the day’s top gainer and was trailed by Sonargaon Textile and Prime Textile. Meanwhile, the turnover chart was topped by BEXIMCO, while IPDC and Malek Spinning also had a considerable turnover.

The Bangladesh Bank on Sunday also allowed nonbank financial institutions to calculate their stock market exposures at cost prices instead of market prices.

The central bank said in a circular on Sunday ‘from now on, a financial institution can calculate its stock market exposure at cost prices instead of the market prices of shares, corporate bonds, and mutual funds’.

On August 4, the central bank allowed the banks to calculate their stock market exposures at cost prices. The decision took effect immediately.