Stocks continue to advance, turnover increases 47%

Stocks continued their gaining streak on Monday amid a renewed sense of optimism in the new year.

DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), hit the 6,920 mark twice on the day and finally closed 0.43% higher than the previous day at 6,882 on Monday.

Investors' spontaneous participation increased the daily turnover of the DSE by 47% to Tk1,314 crore.

Favourable macroeconomic indicators, proactive regulatory initiatives and expectations in the movement of sector-specific stocks were the major factors driving investors' buying spree, EBL Securities said in their daily market commentary.

However, the market faced some profit booking moves by some short-term investors, especially in the stocks that had gained sharply in the recent six-day rally.

Stockbrokers said investors seemed to be optimistic after seeing higher export earnings and remittance inflow. On the other hand, many of them are also cautious due to the Omicron threat.

In total, 217 DSE scrips advanced on Monday, while 132 declined and 28 remained unchanged.

Unlike Sunday, an increased appetite for blue-chip stocks reflected through the DS30 index's outperformance. The index, for the selective 30 scrips, gained by 0.6% to close at 2,576.

Mutual funds, services and real estate, tannery, textile, miscellaneous, life insurance, fuel and power, cement, food, pharmaceuticals, travel and leisure, engineering, and IT sectors advanced to add to their respective market capitalisations.

On the other hand, paper, general insurance, financial institutions, telecommunication, banking, ceramic, and jute sectors faced a decline in their market capitalisations amid profit booking moves.