DSE index hits 6,500 points

Stocks ended higher yesterday riding on increased demand for banking stocks, with the benchmark index DSEX of the Dhaka Stock Exchange hitting the 6,500-point mark for the first time.

The DSEX edged up 54 points, or 0.83 per cent, to 6,535 points. This is the highest point since the introduction of the index in 2013.

Despite a recent rally of the market, prices of banking stocks are still lucrative, said a stock broker preferring anonymity.

Banks follow better governance practices than many listed companies and they are under the regulation of the central bank too.

So, investors believe their prices are still quite lucrative, he said, adding that price earnings ratio of the sector was also the lowest among all the sectors which indicates that they were at a lower price. Price earnings ratio of the banking sector stood at 7.83 on Monday, according to LankaBangla Securities data.

Paid up capital of the banking sector is the highest among all the sectors so its impact on the index was also high, added the broker.

Of the listed 31 banks, all except one surged yesterday, shows the DSE data. Apart from the DSEX, the DS-30 and market capitalisation of the DSE was also at a historical high yesterday.

The DS-30, the blue-chip stock index, surged 22 points to 2,366 points. Meanwhile, market capitalisation rose 0.68 per cent to Tk 541,562 crore.

Turnover, another important indicator of the market, went up 5.8 per cent to Tk 2,314 crore.

At the DSE, 178 stocks advanced, 170 declined and 27 remained unchanged.

Despite repeated announcements of there being no undisclosed information, which could be one reason for the rise of stock prices, the Paper Processing & Packaging topped the gainers' list, rising 9.94 per cent yesterday.

Stocks of Beximco were traded the most, worth Tk 109 crore, followed by IFIC Bank, Saif Powertec, Orion Pharmaceuticals and Genex Infosys.

Peoples Insurance Company shed the most, falling 8.50 per cent, followed by Prime Insurance Company, Central Insurance Company, Pioneer Insurance Company and Global Heavy Chemicals.

The port city bourse also rose yesterday. The CASPI, the general index of Chittagong Stock Exchange, advanced 155 points, or 0.82 per cent, to 19,014 points.

Among 326 stocks to undergo trade, 165 advanced, 141 dropped, and 20 remained unchanged.