Stocks keep gaining

The stock market continued to rise for the second consecutive day yesterday thanks to the higher participation of investors, who came in large numbers to take benefit of the low and lucrative prices of shares.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), surged by 70 points, or 1.35 per cent, to 5,258.50.

The positive start of the day gave a boost to the investors' psychology, said Mohammad Nazrul Islam, chief executive officer of MTB Securities.

On the other hand, investors took a lesson from last year, when many of them sold-off shares, pushing the index downwards to around the 3,900 level at a time when Covid-19 was spreading in the country.

"The index bounced back after a few months. This year, they are holding shares before shutting off the trade. We can say the awareness programmes are working this time and this learning will be fruitful in the days to come," Islam said.

"I hope investors will not sell shares at a lower price anymore like they did last year due to panic and incur losses," he added.

Islam went on to say that banks are currently giving handsome dividends.

"So, investing in banking stocks is more profitable at present compared to keeping in banks as deposits," he said.

Eastern Bank announced 17.5 per cent cash and 17.5 per cent stock dividends, Brac Bank 10 per cent cash and 5 per cent stock dividends and Mercantile Bank is going to provide 10 per cent cash and 5 per cent stock dividends.

Jamuna Bank's board also declared 17.5 per cent cash dividend.

The prices of banking shares are very low even though they are declaring high dividends, said an official of MTB Securities.

A top official of the Bangladesh Securities and Exchange Commission confirmed yesterday that the stock market will remain open if banks remain open amid the upcoming restrictions on movement.

"We can only keep the market open if banks remain open as we need to execute money transfers through them," he added.

Dhaka Insurance topped the gainers' list, rising 9.97 per cent, followed by Crystal Insurance, Express Insurance, BD Thai Aluminium and CAPM IBBL Mutual Fund.

Stocks of Beximco Ltd traded the most with Tk 40 crore followed by BD Finance, Robi Axiata, Central Insurance and Continental Insurance.

Premier Bank shed the most, dropping 15 per cent followed by Familytex BD, Libra Infusion, Advent Pharmaceuticals and RSRM Steel.

At the DSE, 228 stocks advanced, 63 declined and 56 remained unchanged.

The Chittagong Stock Exchange also gained yesterday. The CASPI, the general index of the port city bourse, rose 185 points, or 1.23 per cent, to stand at 15,194.

Among 214 traded stocks, 124 rose, 62 fell and 28 remained unchanged, CSE data shows.