NBFI stocks, mutual funds rise amid optimism

The stock price of non-bank financial institutions (NBFI) and mutual funds rose yesterday as investors hope to see good profit in their books amid a bullish market.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 12.28 points, or 0.21 per cent, to 5,634 yesterday.

As the market gained in the last few months, it is normal that mutual funds made higher profits in 2020, according to a merchant banker.

The fund managers make higher profit compared to the index return so investment in their funds is expected, he said.

DSEX rose more than 21 per cent or 1,000 points in the last year, DSE data shows.

Many mutual funds have been trading under their net asset value. So, investors are choosing these units, the merchant banker said.

However, investors should remain cautious since the unit prices for certain funds are already overvalued, he added.

Among 37 mutual funds, two fell and one remained the same while the 34 units advanced on the DSE.

However, turnover, another important indicator of the stock market, dropped 11 per cent to Tk 1,505 crore.

The stocks of NBFIs were also highly demanded yesterday, a stock broker said.

As the companies' financial year ends in December, they will announce their profits and dividends in the coming days.

"The NBFIs are also making higher profits from the stock market so they are rising in value," he added.

At the DSE, 167 stocks rose, 150 fell and 45 remained the same.

Phoenix Finance 1st Mutual Fund topped the gainers' list, rising 10 per cent, followed by IPDC, National Housing Finance and Investments, Alltex Industries, and Robi Axiata.

Beximco was the most traded stock with Tk 122 crore worth of shares changing hands followed by LankaBangla Finance, LafargeHolcim Bangladesh, Beximco Pharmaceuticals and IFIC Bank.

National Polymar shed the most, losing 20.94 per cent, followed by Active Fine Chemicals, Dulamia Cotton, Prime Insurance, and Zeal Bangla.

The port city bourse also rose yesterday. The general index of the Chittagong Stock Exchange, CASPI, climbed up 39 points, or 0.23 per cent, to stand at 16,388.

Of the traded stocks, 126 rose, 113 fell and 34 remained unchanged.

Meanwhile, the DSE announced that maintenance of its management system software will start immediately and shall be continued for the next three weeks to improve its performance.

As such, the DSE mobile app trading service will be available to users from 10.15am to 2pm during this period, it said.  After that, the DSE mobile app service will be available for all sessions and full trading hours.