Stocks rally for fourth day amid optimism
Stocks rose for the fourth consecutive day yesterday boosted by the growing optimism among investors after recent slides.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), gained 12 points, or 0.18 per cent, to close at 6,978. In the last four days, it added 275 points.
Investors are hopeful about seeing a positive outcome from the meeting between the Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC) in presence of the finance minister, said a stock broker.
The upcoming meeting is aimed at solving the disputes between the two regulators after their last week's meeting ended without any concrete decisions.
At the centre of the disputes is two decisions from the BSEC.
Recently, the commission has ordered all the listed companies, including banks and non-bank financial institutions to deposit their undistributed dividend to the stock market stabilisation fund.
It also allowed banks and NBFIs to declare dividend from the current year's profits despite having cumulative losses.
But, the central bank ordered them not to follow the BSEC order.
The row has spooked the confidence of investors, the broker said. "If we get a proper solution on the issues, the investors will get their confidence back."
The premier bourse ended up marginally higher over the last session as investors remained active, said International Leasing Securities in its daily market review.
Throughout the session, the market moved up and down several times before ending in the positive territory, it said.
Selloffs were noticed in the miscellaneous, telecommunication and general insurance sectors. However, the optimistic investors continued their buoyancy in the IT, jute and textiles sectors.
Turnover, an important indicator of the market, fell 3 per cent to Tk 887 crore.
On the DSE, 218 stocks advanced, 118 fell, and 35 remained unchanged.
Sena Kalyan Insurance topped the gainers' list, rising 10 per cent. The company has surged every day since its debut on the DSE and the Chittagong Stock Exchange (CSE) in November.
CVO Petrochemical, Hakkani Pulp, Aamra Network, and Information Services Network Ltd also posted major gains yesterday.
Beximco Ltd was the most traded stock with its shares worth Tk 79 crore changing hands, followed by Genex Infosys, First Security Islami Bank, Sena Kalyan Insurance, and One Bank.
Northern Insurance was the worst performer of the day, dropping 4.34 per cent. Meghna Cement, Fareast Finance, Mercantile Insurance, and ICB 3rd NRB Mutual Fund also gave up significantly.
The CSE, however, fell yesterday. The CASPI, the main index of the bourse in the port city, fell 13 points, or 0.06 per cent, to end the day at 20,402.
Of the stocks, 148 advanced, 93 declined and 29 were unchanged.
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