Welcome to Business Outlook
Related Articles
Bangladesh stocks have continued their foray into new territory, ending yesterday with a new high amid increased participation of buoyant investors.
The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), surged 64 points, or 0.93 per cent, to 6,981.
Meanwhile, DS-30, the blue chip stock index, rose 22 points to 2,496. These are the highest to be reached since their inception in 2013.
Although the index has reached its highest point, many stocks with good performance records still maintain a low price so investment in the stock market has not turned risky yet, said stock investor Sohel Rana.
Moreover, the Bangladesh Securities and Exchange Commission (BSEC) has formed a market stabilisation fund to prop up stocks in case of an abrupt fall, he said.
Banks have the scope to invest further because many of them invested at a low rate compared to the amount they were allowed, he said, adding that there was no reason to bring about sales pressure from institutions.
Only 22 scheduled banks put in around 60 per cent of their allowable investment in the stock market, according to BSEC data.
Turnover, an important indicator of the market, rose 4 per cent to Tk 2,474 crore. At the DSE, 237 stocks advanced, 105 fell and 31 remained unchanged.
People are optimistic about the stock market and they hope it will rise further, so they poured money, said a stock broker.
Thanks to the low interest rate in the banking sector, their draw towards the stock market has gained extra mileage, he said.
As the benchmark index of the DSE was close to 7,000 points while many stocks are overvalued, investors should be cautious over choosing stocks, he added.
Tamijuddin Textile Mills topped the gainers’ list, rising 9.98 per cent, followed by Samata Leather Complex, Active Fine Chemicals, Premier Cement and Hakkani Pulp & Paper Mills.
Green Delta Mutual Fund shed the most, losing 9.3 per cent, followed by DBH First Mutual Fund, Purabi General Insurance Company, Beach Hatchery and Aman Feed.
Stocks of Beximco were traded the most, worth Tk 153 crore, followed by Bangladesh National Insurance Company, Beximco Pharmaceuticals, GPH Ispat, and LafargeHolcim Bangladesh.
Chittagong Stock Exchange (CSE) also rose yesterday. The CASPI, the general index of the port city bourse, edged up 171 points, or 0.85 per cent, to 20,328.
Among the 323 stocks to undergo trade, 183 rose, 105 fell and 35 remained unchanged.
(TDS)
