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Stocks extended the rally on Monday as all three indices and market capitalisation of the Dhaka Stock Exchange (DSE) set at new highs.
The market opened higher in the morning and the key index of the major bourse rose about 42 points within 45 minutes of trading, but profit booking on sector-wise stocks wiped out half of the initial gains.
DSEX, the benchmark index of the DSE, went up by 20.18 points or 0.29 per cent to settle at 6,862–the highest since its inception more than eight years back on January 27, 2013.
Two other indices--the DSE 30 Index and the DSE Shariah Index (DSES) -- followed the suit to close at new highs of 2,459 and 1,487, after gaining 8.05 points and 7.60 points respectively.
The DSE launched the DS30 Index on January 27, 2013, with a base point of 1,460.30 while DSES was introduced on January 20, 2014, with a base point of 941.27.
The market capitalisation of the prime bourse also hit a fresh all-time high at Tk 5,563 billion on Monday, surpassing the previous day’s record high of Tk 5,544 billion.
Turnover, another important indicator of the market, stood at Tk 27.74 billion on the country’s premier bourse, in a further buck by 2.51 per cent over the previous day’s tally of Tk 27.06 billion.
Market analysts said the market was on the rise in the last few weeks due to lower returns from the money market and extended credit facilities while the news of regulatory approval to the first board of governors of the much-expected Capital Market Stabilisation Fund (CMSF) boosted their confidence.
The securities regulator’s recent move to extend the credit facilities to the investors as per the existing margin loan ratio until the key index remains below 8,000 points, encouraged investors to the market.
In other words, a maximum margin loan of Tk 80 can be provided against a client’s own investment of Tk 100.
The losers, however, took a modest lead over the gainers, as out of 376 issues traded, 183 declined, 166 advanced and 27 remained unchanged on the DSE trading floor.
Beximco - the flagship company of Beximco Group-topped the turnover list with shares worth Tk 1.30 billion changing hands, closely followed by Power Grid Company (Tk 1.03 billion), LafargeHolcim (Tk 617 million), IFIC Bank (Tk 525 million) and LankaBangla Finance (Tk 490 million).
Low-cap companies dominated the gainers’ list with Padma Life Insurance was the day’s top gainer, posting a 9.91 per cent rise while Stylecraft was the worst loser, losing 5.78 per cent.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index – CASPI –rising 75 points to settle at 19,996 and the Selective Categories Index – CSCX gaining 46 points to close at 11,989.
Of the issues traded, 154 advanced, 146 declined and 30 remained unchanged on the CSE trading floor.
The port city’s bourse traded 39.76 million shares and mutual fund units with a turnover value of Tk 1.01 billion.