Stocks back to the black
Stocks rose again yesterday riding on higher demand for banking shares following a plunge the preceding day amid profit booking.
The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), surged 43 points, or 0.75 per cent, to stand at 5,873.
"Since bank stocks had remained low for many months now, it was expected to rise," said Mir Ariful Islam, head of research at Prime Finance Asset Management Company.
Although investors do not have confidence in the country's lenders, their earnings and dividends are considerably high while their stock prices are low.
As a result, some investments were made on these stocks and since they are more capital based, their returns had a positive impact on the index, he added.
Regarding the overall market, Islam said investors should aim for cheap but potentially lucrative stocks to avoid losses.
This is because overvalued stocks have prices that are not justified by their earnings and so, they could drop at any time and hamper investments.
Islam went on to say that the market was witnessing more investment as people had a lot of confidence on the current authority of the Bangladesh Securities and Exchange Commission.
"So, turnover is quite high now, which is a hopeful thing for the market," he added.
Turnover at the DSE crossed Tk 2,000 crore for the first time in four months yesterday, when it grew 22 per cent to hit Tk 2,099 crore.
At the country's premier bourse, 132 stocks rose, 179 fell and 56 remained the same.
Premier Leasing and Finance topped the gainers' list, rising 10 per cent, followed by Provati Insurance Company, Desh General Insurance Company, Southeast Bank and Genex Infosys.
Beximco's stocks were traded the most, worth Tk 175 crore, followed by Prime Bank, LankaBangla Finance, Saif Powertec and NRB Commercial Bank.
Continental Insurance shed the most, dropping 9.47 per cent, followed by Crystal Insurance Company, Dacca Dyeing and Manufacturing Company, Runner Automobiles and Asia Insurance.
Chittagong Stock Exchange (CSE) also rose yesterday as the CASPI, the general index of the port city bourse, ballooned by 158 points, or 0.93 per cent, to reach 17,052.
Among its 297 stocks to witness trade, 129 advanced, 134 dropped and 34 remained the same.
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