Stock index hits 3.5yrs high

The prime index of the stock market jumped to a three-and-a-half-year high yesterday thanks to increased participation from investors.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 57 points, or 0.92 per cent, to 6,266. This is highest since that of January 7, 2018, when the index was at 6,268.

Investors are motivated to invest more after the government's decision to launch a new incentive package and reopen the economy ahead of the upcoming Eid-ul-Azha, said a top official of a leading stock brokerage firm.

Prime Minister Sheikh Hasina announced five new stimulus packages of Tk 3,200 crore for low-income people, who have been hit hard by the ongoing restrictions imposed due to the coronavirus, according to a government circular.

These decisions gave a positive momentum to stock investors because it will impact the demand side of the economy positively, said the broker.

As the government also decided to open all economic activities from July 15, it will also be a relief for listed companies' business, he said.

But an alarming issue was that investors were still rushing towards junk stocks and the regulator should take strong steps against any rumour-based price volatility and manipulation, the broker added.

RN Spinning Mills topped the gainers' list, rising 10 per cent, at the DSE followed by Zeal Bangla, Tamijuddin Textiles, Paper Processing & Packaging, and Fine Foods.

Among the top five, four are from junk category and one was of B category stock, showed the DSE data.

Turnover, an important indicator of the market, soared 4.31 per cent to Tk 1,668 crore. At the DSE, 212 stocks advanced, 129 fell and 32 remained unchanged.

Stocks of Beximco were traded the highest, worth Tk 181 crore, followed by Power Grid Company, LafargeHolcim Bangladesh, Southeast Bank and LankaBangla Finance. Sonali Life Insurance shed the most, losing 6.35 per cent, followed by Desh Garments, Envoy Textiles, Hwa Well Textiles, and Aziz Pipes.

Chittagong Stock Exchange (CSE) also surged yesterday. The CASPI, the general index of the port city bourse, rose 179 points, or 0.99 per cent, to 18,220. Among the 310 stocks to witness trade, 165 rose, 118 fell and 27 remained unchanged.