DSE index nears 6,700 points

The Dhaka stock index soared sharply to almost 6,700 points yesterday alongside retail investors' participation while Bangladesh Bank continues to mop up excess liquidity from the banking system.

The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), continued to surge in the last two trading days, rising 76 points, or 1.14 per cent, to 6,699 yesterday.

The DS-30, the blue chip stock index, soared 29 points to 2,427. The Shariah index of the premier bourse, DSES, rose 14 points to 1,459. These are record highs to be reached by all three since their inception in 2013.

General investors are buying stocks even though the central bank's mopping up process was continuing, said a top official of a merchant bank, preferring anonymity.

Yesterday, a 91-day T-bill rate went up from 0.48 per cent to 1.90 per cent while another 364-day one's rate went up from 1.24 per cent to 3 per cent.

In the mop up process, around Tk 2,200 crore was taken out from the banking sector.

So, it proves that investors are optimistic about the stock market, he said. Responding to a question, the merchant banker said this year banks were not as much active as they were in 2009, so the situation was not the same.

Banks increased their investments in the stock market slightly compared to that in the last few years. However, their participation is still lower than that of the bull run of 2009 and 2010, he said.

So, the mopping up process will not impact the market to that much of an extent but slightly lower confidence among general investors, he added.

Turnover, another important indicator of the market, rose 20 per cent to Tk 2,661 crore.

At the DSE, 209 stocks advanced, 144 declined and 23 remained unchanged.

Investors believe that the market has a scope to rise further from the present point so they are investing, said a stock broker.

Many good scrips are still lucrative, so they can invest. However, some stocks are already overvalued so they have to cautious in choosing shares, he said. If they can invest in well-performing stocks, they will become gainers, he added.

Beximco and Beacon Pharmaceuticals contributed the highest, adding 21 points jointly to the benchmark index.

Stocks of Beximco rose 4.78 per cent to Tk 107.5 yesterday. The Beacon stocks jumped 7.27 per cent to Tk 213.

Beacon Pharmaceuticals informed that Syria issued it a good manufacturing practice certificate for registering it to avail medicine.

Last March, the drug maker informed that a technical team of the government of Syria inspected the manufacturing plant of Beacon Pharmaceuticals.

"If the Syrian government approves, we may export $5 million worth of pharmaceuticals to Syria by December, 2021 and have the potential to increase exports to $10 million within one year," the company added.

Newly listed South Bangla Agriculture & Commerce Bank topped the gainers' list, rising 10 per cent, followed by CVO Petrochemical Refinery, Shyampur Sugar Mills, C&A Textiles and Ring Shine Textiles.

Stock of Beximco were traded the most, worth Tk 259 crore, followed by LankaBangla Finance, IFIC Bank, Alif Industries and Beximco Pharmaceuticals.

IFIL Islamic Mutual Fund One shed the most, falling 5.55 per cent, followed by Paper Processing and Packaging, Prime Insurance and Bangladesh Monospool Paper and Manufacturing.

The port city bourse also rose yesterday. The CASPI, the general index of Chittagong Stock Exchange, advanced 237 points, or 1.23 per cent, to 19,515.

Among 323 stocks to undergo trade, 192 advanced, 104 dropped, and 27 remained unchanged.