Stocks open sharply higher as investors put fresh bets on selective issues

Stocks witnessed a sharp rise at the opening on Monday as buoyant investors put fresh bets on selective stocks ahead of the dividend season of June-closing companies.

Following the previous day’s upward trend, DSEX, the prime index of the Dhaka Stock Exchange (DSE), climbed 51.45 points, or 0.78 per cent, to stand at 6,586, after the first two hours of trading at 11:30 a.m. 

Two other indices also saw upbeat trends till then. The DS30 index, comprising blue chips, rose 29.70 points to reach 2,393 and the DSE Shariah Index (DSES) jumped 14.29 points to 1,449. 

Turnover, another important indicator of the market, stood at Tk 9.69 billion after two hours of trading. 

Market insiders said the market remained bullish amidst enthusiastic participation as investors were more confident in putting fresh bets on anticipating positive momentum ahead. 

The investors kept their buying binge amid upcoming dividend expectations as they expected strong earnings for the companies whose financial year ended in June, said a merchant banker.

Besides, the recovery signs on the macroeconomic front, particularly stability in the foreign exchange rates, rising exports, increasing remittance inflow as well as declining imports, encouraged investors to remain on the trading floor, he said.

Of the issues traded till then, 115 advanced, 115 declined, and 133 remained unchanged on the DSE trading floor.

Orion pharma became the most traded stock till then, with shares worth Tk 1.65 billion changing hands, followed by Beximco (Tk 1.10 billion), JMI Hospital Requisite Manufacturing (Tk 395 million), Unique Hotel & Resorts (Tk 360 million) and Eastern Housing (Tk 295 million).

The Chittagong Stock Exchange also saw a sharp rise till then, with its All Shares Price Index (CASPI) rising 172 points to stand at 19,373, while the Selective Categories Index (CSX) rose 103 points to reach 11,612, also at 11:30 am.

Of the issues traded till then, 78 advanced, 58 declined, and 76 remained unchanged, with a turnover of Tk 153 million till then.

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