Stocks extend rally as investor optimism grows

Dhaka stocks rallied for the second consecutive day on Thursday, as investors’ presence grew significantly on trading floor following the tax department’s clarification over the gain tax issue.

Investors especially the bargain hunters continued to inject fresh funds into sector-specific securities with quick gaining potential.

The DSEX, the benchmark index of the DSE, jumped 13.9 points or 0.23 per cent to settle at 6,352 against 6,338 in the previous trading session.

Among other indices, the DS30, the blue-chip index, added 3.8 points to close at 2,192, and the DSES, the Shariah-based index, rose 3.1 points to 1,378.

Turnover, another crucial market indicator, shot up by 35.9 per cent to Tk 1,063 crore against the tally of Tk 782 crore in the previous trading session.

The life insurance sector topped the turnover chart with a contribution of 31.6 per cent of the total turnover of the DSE, followed by food & allied (11.4 per cent) and pharmaceutical (8.9 per cent) stocks.

Meghna Life Insurance was the day’s turnover leader with Tk 43 crore worth of its shares changing hands, followed by ntraco Refueling Station Limited, and Fareast Islami Life Insurance.

The market’s recovery from a sharp rumor-based selloff earlier this week instilled confidence among investors, prompting them to take positions in equities with short-term gaining potential, said EBL Securities, a stockbroker, in its daily market review. Investors’ participation was mostly concentrated on sectoral scrips with the highest concentration on life insurance sector, it added.

Majority of sectors displayed positive returns, with the with the life insurance reporting the highest gain of 7.0 per cent, followed by services (0.6%), and travel (0.5%).

On the other hand, the jute suffered the most with a loss of 2.3 per cent, followed by general insurance (1.2 per cent), and cement (0.2 per cent). Navana Pharmaceuticals Limited topped the gainers’ chart of the DSE with a return of 9.9 per cent, while National Tea Company Ltd was the day’s worst sufferer with a loss of 6.1 per cent.