Stocks bounce back after two days
The stock market bounced back yesterday as institutional investors took to fattening up their portfolios.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 37.5 points, or 0.58 per cent, to 6,417 compared to the previous day. It had dropped 45 points on the preceding two days.
In another development, stock market trade is scheduled to remain suspended next Monday and Wednesday as Bangladesh Bank has decided to keep banks shut on those two days.
For the remaining three working days of the week, trade will run from 10:00am to 2:00pm.
Though general investors are hesitant, some institutional investors preferred buying stocks amidst the intensification of the pandemic, said a top official of a leading brokerage firm.
Money is very much available in the banking sector and there is no lucrative scope for investments, so some big investors are preferring the stock market to keep their money rolling, he said.
Excess liquidity in the banking sector stood at Tk 231,462 crore as of June, up 66 per cent year-on-year and 9 per cent from a month ago, according to Bangladesh Bank data. The investors believe the upcoming monetary policy will be expansionary, making their investment decision logical, said the broker.
The central bank is scheduled to announce the monetary policy for the current fiscal year today.
However, general investors are less active in the market now, he added.
Turnover, an important indicator of the market, fell 6.97 per cent to Tk 1,360 crore compared to the previous day.
Peoples Insurance Company topped the gainers' list yesterday, rising 10 per cent for the second consecutive day on disclosing earnings for the April-June period of the current year. Its earnings per share rose 57 per cent to Tk 0.60.
Stocks of Fu-Wang Ceramic Industry were traded the most, worth Tk 44 crore, followed by Saif Powertec, Beximco, GPH Ispat and Central Insurance Company.
Despite disclosing higher profits, stocks of HeidelbergCement Bangladesh shed the most in the market, falling 5.12 per cent followed by Emerald Oil Industries, Global Heavy Chemicals and C&A Textiles.
Earnings per share of the HeidelbergCement stood at Tk 11.79 in the first half of the current year while it was Tk 2.54 in the negative in the same period last year. At the DSE, 218 stocks advanced, 122 fell and 35 remained unchanged.
Chattogram Stock Exchange also rose yesterday. The CASPI, the general index of the port city bourse, increased 89 points, or 0.48 per cent, to 18,621.
Among 315 stocks to undergo trade, 172 advanced, 103 fell and 40 remained unchanged.
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