Dhaka stocks advanced for the third trading session on Monday with a higher turnover thanks to soaring prices of banks’ shares and optimism fuelled by media reports that foreign investors’ participation had increased in October.
The benchmark general index of Dhaka Stock Exchange, DSEX, increased to 4,085.20 points, gaining 2.30 per cent, or 91.87 points.
DS30, the blue-chip index of the bourse, added 0.93 per cent, or 13.46 points, to close at 1,447.31 points.
The turnover of the bourse increased to Tk 412.05 crore from the previous trading session’s Tk 315.23 crore.
Of the 284 shares and mutual funds traded on the day, 232 advanced, 40 declined and 12 remained unchanged.
Shares prices of all the 30 listed banks increased significantly on the day as the sector gained 4.85 per cent.
Market operators said the investors’ confidence was boosted by media reports that participation of foreign investors had increased in October.
Rise in prices of banks’ shares was an important reason behind the significant jump of indices due to their large market capitalisation, they also said.
Active participation of the institutional investors was another reason behind the significant rise, added the operators.
‘News of increased net foreign investment despite political plight exerted a bullish vibe from
the very beginning of today’s [Monday] session,’ IDLC Investments said in its daily market commentary.
‘In spite of gloomy political state of affairs and nationwide shutdown being on progress, the bourse marched on,’ it said.
‘Consequently, DSEX crossed the much-observed 4000 mark early in the session and closed at 4085.21 points, highest in 27 sessions. The robustness tempted inactive fund from the sideline, which ultimately found its way in significantly undervalued scrips,’ it added.
UCB led the turnover chart on the day as its shares worth Tk 20.13 crore changed hands.
Generation Next Fashions, Padma Oil, Envoy Textile Mills, Meghna Petroleum, Square Pharmaceuticals, Titas Gas Transmission and Distribution Company, Malek
Spinning, Argon Denims and Grameenphone were the day’s other turnover leaders.
Desh Garments gained the most on Monday as the price of its shares increased by 10 per cent, while Legacy Footwear lost the most, 4.63 per cent. (source)