Stocks open higher as large-cap surge

Stocks opened higher on Monday as opportunistic investors continued taking positions in the sector-specific shares in anticipation of quick gains.

The easing of adversities on the macroeconomic front, along with the central bank’s decision to keep policy rates unchanged at 10 per cent for the second half of the current fiscal year, boosted investor confidence to some extent.

Besides, declining Treasury yields and bank interest rates spurred bargain hunters to take positions in lucrative shares amid expectations for reversal from the market’s prolonged bearish sentiment.

Analysts believe the Bangladesh Bank’s (BB) decision to keep its policy rate unchanged amid falling inflation and treasury yields is a positive signal for the equity market outlook.

The market rally was led by large-cap stocks--- Grameenphone, BRAC Bank, United Power, BAT Bangladesh and National Bank.

Following the previous day’s rise, the prime index of the Dhaka Stock Exchange (DSE), went up by more than 20 points or 0.39 per cent to 5,219 at 11:00 am, when the report was filed.

The DS30 index, a group of 30 prominent companies, also gained 8 points to 1,930 while the DSES index, which represents Shariah-based companies, rose 6 points to 1,160.

Turnover, another important indicator of the market, stood at Tk 1.31 billion.

Of the issues traded till then, 224 advanced, 74 declined, and 70 issues remained unchanged on the DSE trading floor till then.

GP was the most traded stock with shares worth Tk 251 million changing hands.

The Chittagong Stock Exchange also saw a positive trend till then with its All Shares Price Index (CASPI)—gaining 25 points to 14,530 while the Selective Categories Index – CSCX rose almost 16 points to 8,807 till then.

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