Stocks ended marginally higher amid rising turnover

FE Online Report | Wednesday, 16 June 2021

Stocks ended marginally higher for the second straight sessions on Wednesday as investors continued their buying appetite on insurance sector issues.

The market opened on a positive note which persisted till the end of the session as investors were mostly active on insurance stocks like the previous day.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 29.42 points or 0.48 per cent to settle at 6,051. DSEX added 37 points in the two consecutive sessions.

Two other indices also edged higher with the DSE 30 Index, comprising blue chips, advanced 6.38 points to finish at 2,183 and the DSE Shariah Index (DSES) gained 4.59 points to close at 1,288.

Market experts said stocks stayed afloat as bargain hunters showed their appetite riding on the news that the special facility to legalise undisclosed income is likely to continue in the next fiscal year.

The finance bill 2021 may include the continuation of the special facility to whiten black money in stocks which can have a positive impact on the market, they said.

Turnover, a crucial indicator of the market, crossed Tk 21 billion-mark again and amounted to Tk 21.09 billion, which was 4.0 per cent higher than the previous day’s mark of Tk 20.32 billion.

Overall market participants displayed a portfolio restructuring strategy while many investors rushed to participate in hyped-up insurance sector stocks, said a merchant banker.

Gainers took a modest lead over the losers, as out of 372 issues traded, 182 advanced, 156 declined and 34 issues remained unchanged on the DSE trading floor.

Beximco - the flagship company of Beximco Group- continued to dominate the turnover chart with shares worth Tk 1.75 billion changing hands, followed by Pioneer Insurance (Tk 829 million), BBS Cables (Tk 610 million), Orion Pharma ( 358 million) and Confidence Cement (Tk 341 million).

Popular Life Insurance was the day’s top gainer, posting a 9.98 per cent gain while Sonar Bangla Insurance was the worst loser, losing 8.70 per cent following its lower than expected dividend declaration.

A total number of 306,707 trades were executed in the day’s trading session with a trading volume of 574.31 million shares and mutual fund units.

The market cap of DSE rose to Tk 5,083 billion on Wednesday, up from Tk 5,066 billion in the previous session.

The Chittagong Stock Exchange (CSE), also edged higher with the CSE All Share Price Index – CASPI –gaining 66 points to settle at 17,530 and the Selective Categories Index – CSCX rising 38 points to close at 10,551.

Of the issues traded, 156 advanced, 124 declined and 38 issues remained unchanged on the CSE.

The port city’s bourse traded 25.75 million shares and mutual fund units with a turnover value of Tk 792 million.

[email protected]