Stock market’s bull run keeps going

Snapping the slight correction in the previous trading session, Dhaka stocks again rallied on Thursday, as the market’s bull-run prompted investors to pour fresh funds into the recently rallied securities at a large volume.

Meanwhile, the insurance stocks played the pivotal role behind the bullish trend of the market, as investors were heavily concentrated on the sector, helping the key index jump significantly.

A recent announcement that no vehicles would be allowed to ply on streets without insurance coverage, produced significant investor optimism about the insurance securities, analysts and stockbrokers said.

Besides, many insurance companies recently announced decent cash dividends for their shareholders for the year ending in December 2022, another reason making investors optimistic injecting funds in the sector’s scrips, they added.

The DSEX, the broad index of the Dhaka Stock Exchange (DSE), jumped 19.83 points to settle at 6,325 yesterday against 6,305 in the previous trading session.

Earlier, the prime index registered a 27-week high of 6,306 points on Tuesday.

Turnover, another crucial market indicator, fell by 6.6 per cent to Tk 1,036 crore, against the tally of 1,109 crore in the previosu trading session.

Many investors especially foreigners, according to stockbrokers and analysts, were now pouring big funds into fresh equities following the recent vibrancy in the market, helping the market register a record jump in its daily turnover value.

The life insurance sector topped the turnover chart with a contribution of 20.4 per cent of the total turnover of the DSE, followed by general insurance (12.3 per cent), and food & allied (9.4 per cent).

Bangladesh Shipping Corporation was the top traded stock with Tk 46 crore worth of its shares changing hands, followed by Navana Pharmaceuticals Limited (Tk 31 crore), and Meghna Life Insurance Co Ltd (Tk 30 crore).

The market remained upbeat throughout the session, with buyers beating sellers across the trading floor, while the rallied stocks were in focus, said EBL Securities, a stockbroker, in its daily market review.

The recent rise in the market participation bolstered confidence among investors to take fresh bets in equities with short-term gain potential, it added.

Most sectors displayed positive returns yesterday, with life insurance performing the best with a gain of 4.6 per cent, followed by general insurance (3.9 per cent), and travel (3.5 per cent),

On the other hand, the IT faced the highest correction of 1.1 per cent, followed by ceramic (0.4 per cent) and textile (0.3 per cent).

Crystal Insurance Company Limited topped the gainer’s chart of the DSE with a return of 9.9 per cent, while, Simtex Industries Limited was the day’s worst sufferer with a loss of 9.5 per cent.

Out of the securities traded, 105 stocks advanced, 70 issues declined, and 217 scrips did not see any movement on the DSE trading floor.

The port city bourse, CSE, also settled on green terrain, with its two major indices – the selected indices (CSCX), and the all-share price index (CASPI) – advanced by 24.5 points and 41.5 points respectively.