Stocks extend rising streak
The stock market continued to rise for a fourth day yesterday following the two-day weekend thanks to a curious increase in share prices of non-bank financial institutions (NBFIs).
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 21 points, or 0.39 per cent, to 5,33142.
There is apparently no reason for the rise of the stocks and index, said a merchant banker preferring anonymity.
However, one recent development is of a group of people taking up stakes of the NBFI sector, he added.
While most stocks at the Dhaka bourse dropped, 20 out of 23 NBFIs made gains, shows the DSE data.
"This is crazy. How can all the shares of listed NBFIs behave like this," said the banker.
The NBFI shares rallied last Thursday too, he said.
This year NBFIs will have to keep provisioning against loans as an associated waiver came to an end last year, he added.
Banks and the NBFIs recorded higher incomes last year as Bangladesh Bank eased rules on loan classification taking the pandemic into consideration.
The banking regulator asked lenders not to consider businesspeople as defaulters if they failed to repay instalments until June 30 last year.
With the prolonging of the crisis, the deadline was extended initially to September 30 and then to last December.
Another stock broker also cited that there was no significant reason behind the rise of the NBFIs.
BD Finance's recent move to attract investment from the US gave a boost to investors' confidence in the sector, he said.
The Bangladesh Finance and Investment Company (BD Finance) signed a deal with US-based Sovereign Infrastructure Group to attract $2 billion worth of investment in infrastructure projects in the next two years.
Yesterday Prime Insurance Company topped the gainers' list rising 10 per cent followed by Provati Insurance Company, MIDAS Financing, HeidelbergCement Bangladesh and Rangpur Dairy & Food Products.
Singer Bangladesh gained 1.79 per cent to Tk 170.8 a share after it posted an increase in its quarterly earnings.
The electronics and home appliance maker said its earnings per share rose 52 per cent year-on-year to Tk 1.81 in the January-March period of 2021.
Overall, 103 stocks advanced, 165 declined and 80 remained unchanged.
An upward trend is also prevailing at Chittagong Stock Exchange. The CASPI, the general index of the port city bourse, rose 34 points, or 0.22 per cent, to stand at 15,413.
Among 209 stocks to witness trade, 78 rose, 95 fell and 36 remained unchanged, shows the CSE data.
Comments