The prime index of the Dhaka Stock Exchange went up by 7 percent and the market capitalisation by 5 percent
Indices of the country's both bourses rose for a tenth-straight session on Thursday as investors continued their buying spree with a strong optimism following a gradual reopening of the economy and an expansionary monetary policy.
In the last ten trading days, DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), went up by 7 percent and the market capitalisation by 5 percent.
On Thursday, the daily turnover at the premier bourse also continued to impress. It rose by 17 percent to Tk836 crore, the highest in the new fiscal year upon an increased participation by investors.
According to the review of a brokerage firm, the investors' confidence appeared to grow amid a positive movement in the macroeconomic activities. Such as Bangladesh's export earnings rebounded to record $3.91 billion in July.
The record happened owing to an increased shipment of readymade garment products as global buyers had reinstated their orders with the hope of improving the situation of the coronavirus pandemic.
Analysts welcomed the expansionary monetary policy declared by the central bank expecting that the increased money flow would help revive the economy from the Covid-19 fallout.
The Bangladesh Bank has set a target for moderate inflation, higher domestic and private sector credit growth and lower public credit growth, meant for supportive money flow to the economy.
Investors have appreciated the bank rate reduction by 100 basis points.
The benchmark index at the DSE gained 1.33 percent to close at 4,364 on Thursday.
However, investors' attention was mostly concentrated on general insurance that witnessed the highest turnover but shed 2.88 percent of its market capitalisation on the last day of the week.
The second highest turnover was in the pharmaceuticals and chemicals which posted gains of 2.66 percent, which is impressive considering its high capitalisation.
The engineering sector made a surprise, with a massive 4.10 percent gain and steel giants–BSRM Ltd and BSRM Steel Ltd–rising strongly.
Out of 353 issues traded at the DSE, 219 advanced, 79 declined and 55 remained unchanged.
The port city's bourse, Chittagong Stock Exchange (CSE), also registered an upward trend at the end of the session. The selected index, CSCX and CASPI increased by 101.9 points and 171.6 points respectively.
At the CSE, 159 advanced, 50 declined and 56 issues were unchanged.
The turnover at the port city bourse stood at Tk49 crore.