Stocks continue to rise but turnover falls
Stocks in Bangladesh continued to rise for a fourth consecutive trading day yesterday after news surfaced that fuel price had gone down in the world market for which the government on August 14 announced that local rates could soon be adjusted.
The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), went up 18 points, or 0.28 per cent, to 6,259 yesterday. Over the last four trading days, the rise has been by 111 points.
Volatility has also reduced of the exchange rate of the local currency with the greenback last week, said stock market analysts. The rate had soared to Tk 120 per US dollar a week ago.
Brent crude oil settled down at $92 a barrel last week, the lowest since Russia's invasion of Ukraine in February that had caused it to surge to well over $120 a barrel earlier in the year.
The analysts are saying that if the fuel price drops locally, it would have a positive impact on the stock market as it would reduce the costs of listed companies.
Turnover at the DSE dropped 8.8 per cent to Tk 1,057 crore yesterday. At the premier bourse, 136 stocks advanced, 143 declined and 102 remained unchanged.
The stock market remained bullish for a fourth consecutive session amidst enthusiastic participation as investors are more confident and buoyant in putting fresh bets anticipating a positive momentum ahead, said International Leasing Securities in its daily market review.
According to sources at the Ministry of Power, Energy and Mineral Resources, Bangladesh is contemplating import of Russian oil via a third country that will decrease the fuel prices as well as inflation in the country, it said.
Moreover, the central bank tightened the spread between the buying and selling rates of the US dollar to curb the currency volatility.
All the measures have tempted investors to remain active on the trading floor which has pushed up the index, it added.
Meanwhile, both DS30 and DSES gained 6.10 points and 6.25 points respectively.
Among the sectors, jute rose 3.1 per cent, cement 1.9 per cent and services 1.6 per cent whereas life insurance dropped 0.8 per cent and general insurance 0.6 per cent.
In context to the total turnover, investors' activities were mostly centred on textiles (19.4 per cent), miscellaneous (17.5 per cent) and engineering (10.3 per cent) sectors.
Monno Fabrics topped the gainers' list yesterday, rising 10 per cent. Metro Spinning, Union Capital, Rahima Food Corporation and Orion Infusion rose significantly.
Bangladesh Industrial Finance Company shed the most, eroding 6.72 per cent. BD Thai Food & Beverage, Sonali Life Insurance Company, Sonargaon Textiles and Hwa Well Textiles (BD) were also in the list of those suffering losses the most.
Beximco became the stock to be traded the most with shares worth Tk 96 crore changing hands followed by Bangladesh Shipping Corporation, LafargeHolcim Bangladesh, Malek Spinning Mills and Orion Infusion.
Chittagong Stock Exchange (CSE) also rose yesterday. The CASPI, the all-share price index of the port city bourse, went up 20 points, or 0.11 per cent, to 18,390.
At the CSE, 101 stocks went up, 111 down and 85 remained the same.