The Financial Express

Stocks open higher after Eid vacation

| Updated: August 06, 2020 21:13:05

Evaly and Fianancial Express Evaly and Fianancial Express
Stocks open higher after Eid vacation

The prices of most of the shares on bourses witnessed an upward trend in early hours of trading Monday, after three-day Eid holidays, as investors are showing their buying appetite on sector-wise issues.

Trading and official activities on the bourses remained closed from July 31, August 1 and 2 on the occasion of Eid-ul-Azha, including weekly holidays.

After crossing the 4,200-mark of the key index of the major bourse before Eid vacation, the Dhaka Stock Exchange (DSE) showed an upward trend in early trading.

The presence of investors was thin in the brokerage houses as many investors are yet to return in Dhaka. However, many of them executed trade through phones.

Within the first 15 minutes of trading, the key index of the country’s prime bourse advanced more than 25 points while the Selective Category Index of port city bourse rose 20 points at 10:45 am.

After 30 minutes of trading, DSEX advanced more than 34 points while the Selective Category Index of port city bourse gained 41 points at 11:00 am when the report was filed.

DSEX, the prime index of the DSE, went up by 34.20 points or 0.82 per cent to stand 4,248 points at 11:00 am.

Two other indices also witnessed upturn till then. The DS30 index, comprising blue chips, gained11.73 points to reach at 1,432, and the DSE Shariah Index rose 9.12 points to stand at 985.

Turnover, the important indicator of the market, stood at Tk 1.15 billion on DSE when the report was filed at 11:00 am.

Market operators said the central bank’s expansionary monetary policy statement, gradual reopening of the economy coupled with a downward trend in daily Covid-19 infected cases, led investors to take positions in sector-wise stocks.

The Bangladesh Bank unveiled an expansionary monetary policy for the current fiscal year lowering borrowing costs to boost up the money flow for revamping the pandemic-hit economic activities, particularly private sector credit growth and the country’s ailing capital market.

Gradual reopening of the economy and the stock market regulator’s assurance not to lift floor price restriction until the market got stable, led investors to buy shares, said a merchant banker.

Of the issues traded till then, 181 advanced, 38 declined and 94 remained unchanged on the DSE floor.

Pioneer Insurance was the most traded stocks till then with shares worth Tk 125 million changing hands, followed by Eastern Insurance, Standard Insurance, Beximco Pharma, and Beximco.

The port city’s bourse – the Chittagong Stock Exchange – (CSE) saw an upward trend till then with the CSE All Share Price Index- CASPI-advancing 69 points to stand at 12,026 points, also at 11:00 am.

The Selective Category Index – CSCX – also gained 41 points to stand at 7,291 points till then.

Of the issues traded till then, 56 advanced, 7 declined and 35 issues remained unchanged with Tk 15 million in turnover.

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