DSEX hits 26-day high, turnover crosses Tk600cr
CSCX, the broad-based index of the CSE, closed 0.17% higher at 11,158.65
Stocks continued to move up on Sunday following a central bank circular from last week that excluded debt securities from the capital market exposure limit of banks.
DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), gaining 0.19% closed at 6311.6 — the highest since 8 August.
Stockbrokers and analysts said investors cheered the development that the central bank circular should enable the banking industry to invest more in stocks, of course if they want to.
The market started the first session of the month higher and in the second half, there had been some profit booking pressure. However, buyers' appetite did not let the market fall and 122 scrips advanced against the declines of 35 during the closing bell.
Meanwhile, a decent balance between demand and supply of securities helped increase trading turnover in the premier bourse by 34% and cross Tk600 crore for the first time in the last one month.
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Non-life insurance sector, following the recent correction, gained 2.76% on Sunday, followed by services and real estate, and jute sectors. Only bank and miscellaneous sectors failed to stay in the green territory.
Eastern Insurance, Crystal Insurance, Simtex, Eastern Housing, Continental Insurance, Janata Insurance, Legacy Footwear, Meghna Insurance, Asia Pacific Insurance and Central Pharma were the top gainers.
CSCX, the broad-based index of the Chittagong Stock Exchange (CSE), closed 0.17% higher at 11,158.65.
Turnover in the port city bourse came down to Tk12.3 crore from Tk18.37 crore.
The Bangladesh stock market has been struggling to ensure liquidity over the past 13 months due to the floor price mechanism imposed by the Bangladesh Securities and Exchange Commission as most of the scrips have no buyer at the artificially held prices.
Speculative funds chasing a few stocks that trade above the floor have often been creating volatility in a number of small and mid-cap scrips.
At the beginning of August, investors sold off stocks amid political and macroeconomic uncertainties and the market recovered most of that over the past two weeks.
