Stocks hit 3.5-yr high

Dhaka stocks soared on Monday with the key index hitting a three-and-half-year high as investors continued buying shares, especially those of textile companies and banks.

DSEX, the key index of the Dhaka Stock Exchange, advanced by 1.12 per cent, or 69.45 points, to close at 6,219.94 points on Monday.

Monday’s index was the highest after January 7, 2018 when it was at 6,268.42 points.

The DSEX gained 227.18 points in the last four sessions.

Trading on the DSE held from 10:00am to 1:00pm on Monday instead of usual 10:00am-2.30pm as trading hours have been shortened in line with bank transaction hours amid strict Covid restrictions in the country.

The key index opened with bullish trend on Monday and maintained the vibe until the end of the session as investors continued buying shares with an expectation of better gains, market operators said.

They said that many investors were encouraged by a Facebook post of Bangladesh Securities and Exchange Commission chairman ShibliRubayat-Ul-Islam in which he urged investors to be patient and not to sell shares with losses.

Many investors were happy as the government has decided to keep banks and the capital market open during the restriction period, market operators said.

Bangladesh government has been imposing strict restrictions shutting down all business activities and offices since July 1 to contain the spread of Covid-19.

Market operators said that investors turned their focus to textile companies and the average share prices of the textile sector soared by 6.1 per cent on Monday.

Out of 58 traded textile companies, share prices of all the companies except one soared on Monday.

EBL Securities in its daily market commentary said, ‘Investors have been showing immense interest in the textile sector as they hope earnings of apparel exports will rise as the US and the EU economies rebounded with mass vaccinations.’

Besides, non-bank financial institution, bank and pharmaceutical sectors advanced by 1.9 per cent, 1.4 per cent and 0.8 per cent respectively.

Share prices of general insurance, telecommunication and energy sectors dropped by 1.7 per cent, 0.4 per cent and 0.3 per cent respectively.

Among the large capitalised companies, a surge in share prices of BRAC Bank, Square Pharmaceuticals, and British American Tobacco added 27 points to the DSEX.

Sonali Life Insurance, which made its debut on June 30, soared by the maximum limit on the circuit breaker on the day to close at Tk 12.1 a share.

Turnover on the DSE also increased to Tk 1,551.48 crore on Monday from Tk 1,407.89 crore in the previous session.

DS30, a composition of 30 large capitalised companies, also added 0.75 per cent, or 16.74 points, to close at 2,225.12 points on Monday.

Of the 366 scrips traded on the DSE on Monday, 243 advanced, 119 declined and 11 remained unchanged.

Shariah index DSES added 0.91 per cent, or 11.96 points, to settle at 1,326.72 points.

BEXIMCO led the turnover chart with shares worth Tk 73.91 crore changing hands on the day.

ML Dyeing, Keya Cosmetics, Sandhani Life Insurance, Maksons Spinning Mills, National Feed Mills, Delta Life Insurance, Malek Spinning Mills, Genex Infosys and IFIC Bank were the other turnover leaders on the day.