Stocks go up for second day

Bangladesh's stock market has continued its rise for two days straight amid increased investor participation.

"Since the market has seen an upward trend for a while now, people are investing more funds in hopes that the index will rise again," said a merchant banker.

The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), rose 19 points, or 0.26 per cent, to 7,351 yesterday.

It is considered normal behaviour for investors to pour funds into the market when they see a rising index but instead, they should invest when the index drops since stock prices are comparatively lower at the time, he added.

Still though, the market index is not overvalued, according to the Bangladesh Securities and Exchange Commission and relevant government officials.

"So, increased investments have led to a rising index," the merchant banker said, adding that even though many stocks were overvalued, the overall market was not.

At the DSE, 112 stocks rose, 231 declined and 31 remained unchanged.

Turnover of the Dhaka bourse increased 13 per cent to Tk 2,681 crore, up from Tk 2,352 crore previously.

Among major sectors, services & real estate, fuel & power, and ceramics experienced price appreciations while non-bank financial institutions, general insurance and life insurance sectors faced corrections, according to UCB Stock Brokerage.

Stocks of LafargeHolcim Bangladesh Limited were traded the most, worth Tk 174 crore, followed by Orion Pharma Limited, Beximco Limited, the Power Grid Company of Bangladesh Limited and Paramount Textile Limited.

The Power Grid Company of Bangladesh topped the gainers' list, rising 9.95 per cent, followed by Advent Pharma Limited, Paramount Textile Limited, Coppertech Industries Limited, and MJL Bangladesh Limited.

Dhaka stocks remained in the green as bargain hunters continued their buying spree on sector-specific issues amid optimism, said International Leasing Securities Limited in its daily market review.

The market opened buoyantly and ended in the same line as optimistic investors showed their appetite for June-closing stocks, especially in the power and pharmaceutical sectors, ahead of earnings and dividend declarations, it added.

The investors took position on stocks riding on the news that credit flow to the private sector has been growing mainly on the back of demand for working capital and surge in imports as apparel exporters made big purchases of textile products as capital goods.

Aman Feed Limited shed the most yesterday, falling 8.95 per cent, followed by Desh Garments Limited, Jute Spinners Limited, Shurwid Industries Limited and Monno Ceramic Industries Limited.

Chittagong Stock Exchange (CSE) also rose as the CASPI, the general index of the port city bourse, rose 87 points, or 0.40 per cent, to 21,520.

Among 325 stocks to undergo trade, 107 advanced, 192 fell and 26 remained unchanged.