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Stocks at the Dhaka Stock Exchange (DSE) continued to rise for a third consecutive day, sending the bourse’s prime index to an all-time high.
The DSEX, the benchmark index of the DSE, rose 26 points yesterday, or 0.35 per cent, to 7,329, the highest since its inception in 2013.
“Many investors are optimistic and hope the market will go up further, so they are buying stocks,” said a top official of a stock brokerage firm.
As a result, the market index is rising alongside its turnover.
“People are investing in huge paid-up capital-based companies and so, the index is rising even though fewer stocks have risen,” he added.
At the DSE, 165 stocks rose, 171 declined and 39 remained unchanged.
Turnover at the Dhaka bourse shot up 10 per cent to Tk 2,502 crore with LafargeHolcim Bangladesh being the largest contributor.
The stocks of the multinational cement maker traded the most, worth Tk 200 crore, followed by Orion Pharmaceuticals, Beximco Limited, Power Grid, and Beximco Pharmaceuticals.
CVO Petrochemical topped the gainers’ list, rising 8.67 per cent, followed by Sonali Paper, Premier Cement, Baraka Patenga Power, and Agni Systems.
Eastern Insurance shed the most, falling 9.98 per cent, followed by Desh Garments, Fareast Finance, Nurani Dyeing, and Shyampur Sugar Mills.
Large-cap sectors posted mixed performances yesterday. Fuel and power booked the highest gain of 1.96 per cent followed by non-bank financial institutions, pharmaceuticals, and food and allied products.
Engineering experienced the highest loss followed by telecommunications and banks. Block trades contributed 0.4 per cent to the overall market turnover.
“Most people are investing in stocks that mostly rose based on rumours,” said a merchant banker preferring anonymity.
Investors should be cautious in such situations as they risk incurring losses.
“The stock prices of many well-performing companies are still at low levels so they can invest those instead,” he added.
Such companies ensure returns in the long run, the merchant banker said, adding that people should not seek short-term profits.
The Chattogram Stock Exchange (CSE) also rose yesterday as the CASPI, the general index of the port city bourse, rose 53 points, or 0.25 per cent, to 21,377.
Among 319 traded stocks, 141 advanced, 149 fell and 29 remained unchanged.
(TDS)
