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Stocks opened higher on Thursday as buoyant investors put fresh bets on heavyweight bank stocks amid improving recent macroeconomic development.
The improving macroeconomic factors, supported by healthy foreign exchange reserves, rising exports, and record remittance inflows have boosted investors sentiment, market analysts said.
Falling inflation and declining government securities yields also spurred bargain hunters to take positions in lucrative banking stocks amid expectations of a reversal of the market’s prolonged bearish trend.
Moreover, optimism over favourable outcome from the ongoing US tariff negotiation also encouraged investors to put fresh bets on undervalued stocks.
Some 32 banks out of 36 listed banks saw price appreciation in the first hour of trading.
Following the previous day’s upbeat note, the prime index of the Dhaka Stock Exchange (DSE), went up by more than 95 points or 1.78 per cent to 5,447 at 11:00 am, when the report was filed at 11:00 am.
The DS30 index, a group of 30 prominent companies, also gained 40 points to 2,105 while the DSES index, which represents Shariah-based companies, rose 14 points to 1,169 till then.
Turnover, another important indicator of the market, also rose and stood at Tk 3.2 billion till then as many investors were not interested to put fresh funds into stocks amid optimism.
Of the issues traded till then, 257 advanced, 64 declined, and 63 issues remained unchanged on the DSE trading floor till then.
The banking sector also dominated the turnover chart as City Bank was the most traded stock with shares worth Tk 260 million changing hands till then, followed by BRAC Bank, Trust Bank and Jamuna Bank.
The Chittagong Stock Exchange also saw an upward trend till then with its All Shares Price Index (CASPI)—gaining 96 points to 14704 while the Selective Categories Index – CSCX rose more than 50 points to 9383 till then.
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