Central bank’s dollar spread tightening pulls stocks further up
An increased participation of the investors helped the DSE’s daily turnover to jump by 61% to Tk1,034.65 crore yesterday
The stock market indices climbed for the second consecutive day yesterday as the Bangladesh Bank tightened the spread between the buying and selling rates of the US dollar to curb the currency volatility.
DSEX – the benchmark index of the Dhaka Stock Exchange (DSE) – surged 50.67 points or 0.82% to reach 6,225 and the blue-chip index DS30 rose 13.72 points to close at 2,213 yesterday.
The port city bourse Chittagong Stock Exchange's main index Caspi also advanced 142 points or 0.78% to 18,313 at the end of Tuesday's session.
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An increased participation of the investors helped the DSE's daily turnover to jump by 61% to Tk1,034.65 crore yesterday.
The equity indices of the Dhaka bourse continued their upward momentum for the second consecutive session, propelled by increased market participation and across-the-bourse buying behaviour of investors after the market rebounded from its continuous losing spree in the last week, according to the daily market commentary of EBL Securities.
The market opened positive as investors were active on both sides of the trading fence, while buyers dominated the market throughout the session, it added.
The market had been in a bearish mood following the sudden hike in fuel prices last week that exacerbated the current inflationary pressure.
Earlier, the US dollar jumped to a record high of Tk119 on the streets of Motijheel which further rattled the confidence of stock market investors in the current macroeconomic environment.
However, the recent initiative from the central bank in setting the spread between buying and selling rates of the greenback at Tk1, in its attempt to manage the ongoing forex volatility along with the recent decline in energy prices in the global markets, has somewhat tamed the investors' pessimism, the daily commentary added.
Yesterday, investors were more active in trading shares of companies in the textile sector, which topped the daily turnover chart. It was followed by miscellaneous, pharmaceuticals, and food sectors.
Besides, investors got much return from the service sector, which was followed by cement, textile, and IT sectors.
Orion Infusion was on top of the table of gainers at DSE as its share price jumped by 9.45%. It was followed by Sonargaon Textile and Prime Textile.
The mutual funds dominated the list of losers as most of the funds failed to provide good dividends to the investors.
