The engineering and non-bank financial institution (NBFI) sectors pushed the country's stock market upward yesterday thanks to increased investor participation.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 142.26 points, or 2.48 per cent, to 5,861.02. This was the highest since February 7, 2019 or a 23-month high.
Stocks of the engineering sector went up 5.45 per cent while it was 2.88 per cent for NBFIs, according to the daily market analysis of UCB Capital Management.
These two sectors topped the turnover list as well with the NBFI sector accounting for Tk 295 crore, or 14.88 per cent of the total turnover.
Meanwhile, the engineering sector registered around Tk 218 crore, or 11 per cent of the total turnover.
Investors are now optimistic about economic rebound from Covid-19 due to the recent news that Bangladesh is going to start vaccinations in February, a merchant banker said.
The government has ensured that the first batch of the Oxford-AstraZeneca Covid-19 vaccines from the Serum Institute of India would arrive by January 25 while vaccination will start from the first week of February.
"So, the index has been rising," he said, adding that the engineering sector had remained low in the previous few months.
With the economic rebound, the country's manufacturing sector is bouncing back, said Abdullah Hujaifah, a high net worth investor.
On the other hand, banks and NBFI stocks normally rise in December and January because they announce their profits and dividends during this time of the year, he added.
Turnover, an important indicator of the stock market, rose 18 per cent to Tk 1,982 crore yesterday.
Among the 361 stocks traded at the DSE, 195 advanced, 106 dropped and 61 remained the same.
Generation Next topped the gainers' list, rising 10 per cent followed by Dominage Steel, Alltex Industries, Beximco and Robi Axiata.
LankaBangla Finance was the most traded stock with Tk 119 crore worth of shares changing hands followed by Beximco Pharmaceuticals, Beximco, LafargeHolcim Bangladesh and IFIC Bank.
ADN Telecom shed the most, losing 9.88 per cent followed by CAPM IBBL Mutual Fund, Sonali Ansh, Provati Insurance and Republic Insurance.
The port city bourse also rose yesterday as the general index of the Chittagong Stock Exchange, CASPI, climbed up 424 points, or 2.54 per cent, to stand at 17,089.
Of the 291 traded stocks, 182 rose, 70 fell and 39 remained unchanged.