Stocks stay buoyant on liquidity hopes
Bangladesh's stock market remained buoyant for the second consecutive day yesterday, sending the prime index of Dhaka Stock Exchange (DSE) to a record high, as investors were upbeat that liquidity flow in the market would continue owing to the central bank's expansionary monetary policy.
"Investors hope that the index will continue to rise as money flow in the banking sector may flood the stock market," said a merchant banker.
The DSEX, the benchmark index of the country's premier bourse, edged up 8.06 points, or 0.12 per cent, to 6,425.25 points yesterday. This is its highest point since the inception of the index in 2013. Earlier on July 25, the index touched a historic high of 6,424 points.
"Bank funds are already coming to the market and so, their (investors) expectation is not illogical," he said, adding that the banking sector has a huge excess of liquidity.
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 that a month ago, according to Bangladesh Bank data.
"If the monetary policy for the current fiscal year is expansionary, then the market will get more liquidity," added the merchant banker.
Turnover, another important indicator of the market, went up 11.8 per cent to hit Tk 1,521 crore.
At the DSE, 159 stocks advanced, 167 declined and 48 remained unchanged.
Despite there being no cause for such a rise, Coppertech Industries topped the gainers' list, growing 10 per cent, followed by AFC Agro Biotech, Metro Spinning, Deshbandhu Polymer and FAR Chemical Industries.
AFC Agro Biotech is going to supply five lakh "RT-PCR" test kits along with "VTM" and swab sticks to the Ministry of Health and Welfare for Covid-19 testing. The value of these goods is estimated to be Tk 43.45 crore. After this news was published on the DSE website, stocks of AFC Agro Biotech rose 9.78 per cent to Tk 30.3 yesterday.
Stocks of Beximco were traded the most, worth Tk 60 crore, followed by GPH Ispat, Saif Powertec, British American Tobacco Bangladesh and Active Fine Chemicals.
Stocks of RAK Ceramics rose by more than 4 per cent after its financial report was published, which said its per share profits stood at Tk 1.02 in the second quarter of 2021.
However, it incurred a per share loss of Tk 0.09 year-on-year.
The multinational ceramics maker said due to a revised and responsive business strategy taken by its management, sales had increased by 65 per cent to Tk 326 crore from Tk 197 crore in the same period the previous year.
The company registered an improve in the cost of sales due to enhanced controls on costs compared to that the year before, resulting in increased profits.
Zeal Bangla Sugar Mills shed the most, falling 5.35 per cent, followed by Central Insurance Company, NRB Commercial Bank, Delta Life Insurance Company and Shinepukur Ceramics.
Amidst the intensifying pandemic situation, Reckitt Benckiser Bangladesh logged higher profits in the first half of the current year.
Earnings per share of the multinational hygiene, health and nutrition goods producer stood at Tk 62.03 in the first half while it was Tk 57.51 in the same period in 2020.
The port city bourse also rose yesterday. The CASPI, the general index of Chittagong Stock Exchange, advanced 13 points, or 0.07 per cent, to 18,635.
Among 315 stocks to undergo trade, 141 advanced, 138 dropped and 36 remained unchanged.
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