Stocks rally, turnover up amid growing participation

Snapping the single-day correction, Dhaka stocks rallied Tuesday as optimistic investors continued to pour fresh funds into lucrative scrips in hope of gain amid growing confidence backed by the ease of macroeconomic pressures.

After a long time of unsteady market behaviour, Dhaka stocks were seen rallying on the first trading session this week following the optimistic economic outlook.

But, the market braced for correction on Monday after investors mainly the cautious participants opted to book profit following a sparked rally in the previous session.

Investors, according to analysts, returned 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).

Besides, a prudent monetary policy taken by the central bank for the second half of the current fiscal year with a policy rate hike of 25 basis points to 6 per cent and other inflation curbing measures geared up investors’ optimism to return back to the trading floor.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), the premier bourse, jumed 35.7 points to settle at 6,282 against 6,246 points in the previous trading session. Among other indices, the DS30, the blue-chip index, surged 13.91 points or 0.63 per cent to 2,215, and the DSES, the Shariah-based index, gained 9.29 points or 0.68 per cent to finish the session at 1,371.

Meanwhile, the prime bourse witnessed a significant increase in participation with the DSE turnover reaching the Tk 900 crore-mark after nearly two and a half months. The DSE turnover stood at Tk 900 crore yesterday which was up 26.2 per cent than the tally of Tk 713 crore in the previous session.

The upward rally persisted throughout the session as buying dominance prevailed across the market since investors turned back to the market to harness some quick-profits from the rallying issues, said EBL Securities, a stockbroker, in its daily market review.

The pharma sector topped the turnover chart with a contribution of 17.2 per cent to the total turnover of the DSE, followed by the IT (14.4 per cent) and the engineering (10.3 per cent).