Stocks soar on confidence gain

Stocks in Bangladesh soared for a second consecutive trading day yesterday as general investors' confidence grew on a regulatory step aimed at stopping the free-fall of the index. 

The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), rose 131 points, or 2.10 per cent, to 6,369.

The Bangladesh Securities and Exchange Commission (BSEC) on May 25 brought down the lower limit of the circuit breaker to 2 per cent, meaning that stocks would not be allowed to drop over 2 per cent in a day.

This was the third change in the past three months. The first was on March 8 when lower limit was decreased to 2 per cent from 10 per cent. Then it was increased to 5 per cent on April 20.

At the DSE, 342 stocks advanced, 25 declined and 10 remained unchanged.

Stocks ended in the positive for the second consecutive day with 131.35 points amidst a rise in turnover thanks to some regulatory interventions which brought back confidence of the investors, said International Leasing Securities in its daily market review.

As a result, investors showed their interest and put fresh bets on the sector-specific issues, it added.

All the sectors achieved price appreciations, including services (6.6 per cent), ceramic (5.2 per cent) and IT (5.1 per cent) by the highest margins.

Based on the turnover, investors' activities were mostly concentrated on financial institutions (18.5 per cent), miscellaneous (12.9 per cent) and pharmaceuticals (11.5 per cent).

Meanwhile, both the DS30, the blue chip index, and DSES, the Shariah-based index, advanced 39 points and 26 points respectively.

Turnover of the DSE also rose 54 per cent to Tk 833 crore from the previous day's Tk 539 crore.

IPDC Finance topped the gainers' list, rising 9.97 per cent. The Paper Processing and Packaging, Tamijuddin Textile Mills, Alltex Industry and Dulamia Cotton Spinning Mills were also in the list.

Prime Insurance Company shed the most, dropping 1.95 per cent. Islami Bank, First Finance, Beacon Pharmaceuticals and Exim Bank were among those suffering losses.