Stocks start rallying amid turnover surge

After a long time of unsteady market behaviour, Dhaka stocks were seen rallying Sunday, as investors’ optimism grew exponentially over the indications of the ease of the macroeconomic crises.

Investors, according to analysts, rushed to the trading floor mainly following the positive signals on Bangladesh’s securing a $4.5 billion worth of loan from the International Monetary Fund (IMF).

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), the country’s premier bourse, surged by 35.5 points or 0.057 per cent to settle at 6,251 against 6,215 points in the previous trading session.

Among other indices, the DS30, the blue-chip index, rose 9.04 points or 0.41 per cent to close at 2,208, and the DSES, the Shariah-based index, added 7 points or 0.51 per cent to 1,364.

Meanwhile, the prime bourse witnessed a substantial increase in participation with the DSE turnover reaching a 2-month high yesterday.

The prime bourse’s turnover jumped by 40.1 per cent to Tk 711 crore Sunday against the tally of Tk 507 crore in the previous session.

The upward market momentum persisted throughout the session, fueled by across-the-bourse participation from investors as they sought quick rallies in sector-specific issues in anticipation of regained market momentum due to signs of economic recovery, said EBL Securities, a stockbroker, in its daily market review.

Moreover, investors also turned back to the market with an expectation of a favorable monetary policy from the central bank in addressing the current liquidity scenario in the money market, which was going to favour the capital market as well, it added,.

The IT sector topped the turnover chart with a contribution of 19.1 per cent to the total DSE turnover, followed by the pharma (15.1 per cent) and the life insurance (10.3 per cent).

Most of the sectors displayed positive returns at the Dhaka bourse with the IT posting the highest gain of 4.1 per cent, followed by general insurance (4.0 per cent) and services (2.5 per cent).

On the other hand, the jute sector faced the highest correction of (1.0 per cent), followed by tannery (0.3 per cent) and ceramic (0.3 per cent).

Out of the 391 issues traded, 110 securities advanced, 61 stocks declined, and 220 scrips remained unchanged on the DSE trading floor yesterday.