Stocks keep creeping up

Stocks rose for five consecutive days yesterday, taking the main index of the premier bourse to a new high.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), added 22 points, or 0.32 per cent, to close at 7,075.

The DS-30, the blue-chip index, gained 12 points to 2,546. These are the highest levels reached by both indices since their inception in 2013.

Their ascent has not put off general investors from buying shares as their confidence is high, said a top official of a brokerage firm.

Institutional investors are almost on the sidelines, he said, adding that investors needed to be careful.

"Investors should invest only in good companies whose earnings are strong, but prices are lucrative."

Turnover, an important indicator of the market, rose to Tk 2,901 crore, which was Tk 2,868 crore the day before.

On the DSE, 154 stocks advanced, 184 fell, and 30 remained unchanged.

Many companies with subpar performance saw their share prices rise abnormally in the last few months, and investors are rushing towards them, said a merchant banker.

"These stocks will be risky because the increase resulted from manipulation.

However, the ploys of the gamblers can be foiled if general investors refrain from buying the securities."

Tamijuddin Textile Mills topped the gainers' list, rising 10 per cent, followed by ADN Telecom, Eastern Housing, Tosrifa Industries, and Shepherd Industries.

Dominage Steel Building Systems shed the most, losing 5.6 per cent, followed by Meghna Condensed Milk Industries, Asia Insurance, Alltex Industries, and Fine Foods.

Stocks of Beximco Ltd were traded the most, worth Tk 256 crore, followed by Saif Powertec, Beximco Pharmaceuticals, LafargeHolcim, and Doreen Power Generations and Systems.

Shares on the Chittagong Stock Exchange were also up. The CASPI, the general index of the bourse in the port city, edged up 99 points, or 0.48 per cent, to close the day at 20,662.

Among the issues traded, 123 rose, 162 declined, and 31 were unchanged.