Stocks maintain upward trend
Pre and post-election buoyancy in the stock markets continued yesterday on the back of a significant increase in the participation of investors, particularly the retail ones.
The benchmark index of Dhaka Stock Exchange (DSE), the premier bourse of the country, rose 31.18 points, or 0.57 percent, to end the day at 5,496.43.
Chittagong stocks also advanced with the bourse's key index adding 79.06 points, or 0.78 percent, to reach 10,194.16. Market insiders say stocks have started to rise thanks to the growing participation of individual investors.
“Some of the institutional investors have also started investing after the election in the hope of a peaceful political situation in the coming years,” said the managing director of a merchant bank, requesting anonymity.
He, however, said most of the investors faced a scarcity of funds and investors who had liquidated their funds earlier began to participate.
Turnover on the DSE rose 31.4 percent to Tk 696.45 crore, the highest in one month, and up from Tk 530.17 crore on Tuesday.
The market has been on an upward trend for the last 10 consecutive sessions, following the correction mode seen throughout 2018.
Foreign investments also plummeted in the just concluded year: net foreign investment stood at Tk 593.13 crore in negative.
Yesterday, the top positive index contributors on the DSE were National Bank, Summit Power and United Power Generation, according to IDCL Securities data.
BBS Cables dominated the turnover chart with 29.11 lakh shares worth Tk 30.51 crore changing hands, followed by Paramount Textiles, Ifad Autos, Saiham Cotton and Beximco.
Savar Refractories, one of the junk stocks, was the day's best performer with a 9.97 percent gain. Junk stocks such as Shyampur Sugar (up 9.97 percent), Meghna Condensed Milk (up 9.70 percent), C & A Textiles (up 9.30 percent), and Tallu Spinning (up 9.01) were in the top 10 gainers list.
On the other hand, AIBL First Mutual Fund was the worst loser, shedding 6.17 percent.
On Chittagong Stock Exchange, gainers beat losers as 181 securities advanced and 52 declined while 26 finished unchanged.
The port city bourse traded 1.23 crore shares and mutual fund units worth Tk 30.29 crore.