Stocks resume bull run to reach 40-month high
Trading turnover on the DSE increased to over Tk2,043 crore on Monday, which was 11.35% higher than that on the previous day
Following a three-week consolidation, Dhaka and Chattogram stocks resumed their bull run on Monday.
DSEX, the broad-based benchmark of the Dhaka Stock Exchange (DSE), ended the session in green for the second consecutive day to surpass all the recent highs and close at a 40-month high.
The widely followed index rose 0.92% to close at 6,125 on Monday, the highest since January 2018.
Analysts thanked the pro-market regulatory move that entirely eliminated floor price to offer liquidity to all types of investors.
Also anticipation for the continuation of the much liquid money market alongside better than expected economic performance helped the bulls step further forward.
On the second day of floor price removal, most of the stocks logged gains which depicted heightened confidence of investors on the market, top tier brokerage firm EBL Securities wrote to its clients after the trading hour.
BSEC announced that there would be no floor price restriction on any scrip which it imposed in March 2020 to save the market from devastation, while the floor raised concerns among large fund managers, especially the foreign ones as many of them felt entrapped in illiquid stocks.
As some stocks were finding no buyers above the floor price, the holders of those were unable to liquidate their position and the removal of floor definitely helped regain their confidence in the market mechanism here.
"Buy dominance on the large-cap sectors namely banks, non-bank financial institutions, and textiles accelerated the upward drive while the hyped-up insurance stocks observed immense sell pressure on the bourse," EBL Securities expressed.
Besides, the trading turnover on the DSE on Monday increased to over Tk2,043 crore, which was 11.35% higher than that on Sunday.
Textile contributed the highest 18.59% to the day's turnover at the DSE, while miscellaneous with 12.51%, and general insurance with 11.42% contribution followed through.
Most of the sectors observed persuasive performance, out of which textile demonstrated a stunning 5.3% gain in market capitalisation, while non-bank financial institutions and banks followed textiles with 1.8% gains separately.
General insurance led the losers with a 2.0% correction while miscellaneous lost 1.1% and energy sector lost 0.9% market capitalization amid the ongoing sector-specific minor corrections.
Out of the 372 issues traded in the DSE, 224 advanced, 119 declined, and price of 29 remained unchanged.
Meanwhile, the Chittagong Stock Exchange also ended in the green terrain with all its indices gaining strength.
However, in contrast to the DSE, turnover at the port-city bourse nearly halved to below Tk80 crore on Monday.