DSEX went up by 58 points or 1.33%, closing the week at 4,364 points on the day. In the last ten trading sessions DSEX gained 288 points
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), continued to gain for the ten consecutive sessions ending at 4,364 points with a 58 points gain on Thursday.
DSEX went up by 58 points or 1.33%, closing the week at 4,364 points on the day. In the last ten trading sessions DSEX gained 288 points.
The upward rally continued as investors went on a buying spree, feeling optimistic about the expansionary monetary policy for FY21 unveiled last week as they thought it would increase cash flow into the market.
With the gain in key indices, the prime bourse witnessed sharp gains in turnover. Daily turnover in the Dhaka Stock Exchange crossed the Tk800 crore-mark.
On Thursday, daily turnover in the DSE stood at Tk837. The figure had been Tk718.3 crore in the previous session.
Among the traded issues, 219 gained, 79 declined and 55 remained unchanged during trading.
Besides, the 10-day surge recovered Tk16,157 crore in market capitalizations at DSE. As of Thursday, the DSE market value rose to Tk3, 33,685 crore, which had been Tk3,17,528 crore on July 23.
“The DSE stocks witnessed a superb session on Thursday and stayed positive for the ten consecutive sessions as the sidelined investors returned after observing positive movements of the market,” said the International Leasing Securities in its market analysis.
In line with the previous session, the market started on a positive note, which continued till the end as investors continued their buying spree on sector specific issues in the expectation that the market would maintain the momentum, it added.
The engineering, life insurance and pharmaceuticals sectors contributed to the improved turnover.
Turnover increased by 16.5%, indicating a strong participation by investors. General Insurance and Pharmaceuticals sectors dominated the turnover chart.
The insurance sector contributed 25.3% of the total turnover while the pharmaceuticals, engineering and textile sectors contributed 18.8%, 9.2% and 9.1% respectively.
Investors continued their buying binge on large-cap along with insurance and financial scripts as the economy is opening up gradually. This encouraged the investors to take positions on sector specific stocks, said stock analyst.
On the other hand, the expansionary monetary policy boosted investors' confidence, which is thought to increase cash flow in the market, they added.
On July 29, the Bangladesh Bank unveiled the monetary policy for FY 2020-2021, bringing down the bank rate to 4% from 5% and repo rate from 5.25% to 4.75% to make funds available for banks at a cheaper rate.
Beximco Pharma secured the leadership position on the top turnover chart with a turnover of Tk43.1 crore, its share price closing at Tk90.1 per share at DSE.
Pragati Life Insurance secured the highest gain of 10% during the session. Agrani Insurance turned out the worst loser, with its price declining by 9.3%.
The port city's bourse, Chittagong Stock Exchange, also registered an upward trend at the end of the session. The selected index, CSCX and CASPI, increased by 101 and 176 points respectively.
Its turnover stood at Tk49 crore. Among the traded issues 159 gained, 50 declined and 56 remained unchanged at the Chittagong Stock Exchange.