The upward rally continued as investors went on a buying spree, feeling optimistic about the expansionary monetary policy for FY21 unveiled last week
The country’s prime bourse yesterday gained 4.13% as investors continued their buying spree with strong optimism following gradual reopening of the economy and regulatory moves to revive the falling market.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), has continued to gain for the last 11 consecutive sessions, ending at 4,545 points with 180 points or 4.13% gain on Sunday.
The highest gain of the DSEX in a single day was 223 points on January 19, this year. The index was launched on January 27, 2013 with 4,056 as base points.
The upward rally continued as investors went on a buying spree, feeling optimistic about the expansionary monetary policy for FY21 unveiled on July 29 as they thought it would increase cash flow into the market.
With the gain in key indices, the prime bourse witnessed sharp gain in turnover. Daily turnover in the Dhaka Stock Exchange crossed the Tk1,100 crore-mark.
On Sunday, daily turnover in the DSE stood at Tk1,128 crore. The figure was Tk837 crore in the previous session.
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Among the traded issues, 293 gained, 42 declined and 20 remained unchanged during the day.
Investors continued their buying binge on large-cap along with insurance and financial scripts as the economy was opening up gradually. This encouraged the investors to take positions on sector-specific stocks, said stock analysts.
On the other hand, the expansionary monetary policy boosted investors' confidence, which was thought to had increased 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.
Meanwhile, the port city's bourse, Chittagong Stock Exchange (CSE), also registered an upward trend at the end of the session. The All Shares Price Index (CASPI) rose 480 points to close at 12,882 and the Selective Categories Index (CSCX) rose 288 points to finish at 7,801.
UCB Capital Management Ltd in its daily market commentary says the key index, DSEX, extends the rally with massive gain as investors exerted buy pressure on scripts from almost all the sectors.
The index posted a gain of 180.3 points in a single session riding on Telecom, Fuel and Power, NBFI and Pharmaceuticals sectors.
Moreover, some positive macro indicators and declining interest rate in the market led investors to take fresh positions, it also said.
Bangladesh’s exports earnings in July rose 44% to $3.91 billion, from $2.71 billion in June, after witnessing a sharp decline in the last couple of months due to the Covid-19 pandemic.
On the other hands, remittance inflows continued to rise for the third consecutive month and reached $2.60 billion in July.
The index remained upbeat throughout the day following the decision of extending the trade time by half an hour.
On Thursday Dhaka and Chittagong Stock Exchange extended the trading hours by 30 minutes, which came into effect from Sunday. The trade began at 10am and continued until 2:30pm.
Pharmaceuticals sector contributed 18.7% of the total turnover while insurance, engineering and banking sectors contributed 14.8%, 13% and 9.9% respectively, according to stockbangladesh.com.
Square Pharmaceuticals secured the leadership position on the top turnover chart at DSE with a turnover of Tk44.07 crore with its share price closing at Tk199.5 per share. Beacon Pharmaceuticals secured the highest gain of 9.9% during the session. Paramount Insurance Company turned out to be the worst loser with its price declining by 6.7%.