The Dhaka Stock Exchange indices maintain their upward trajectory as investors express a renewed appetite for buying in the market following recent corrections.
Furthermore, opportunistic investors are channelling funds into appealing investment prospects across various issues.
On Monday, the benchmark index of the Dhaka Stock Exchange, DSEX, witnessed a gain of 42 points, reaching 6,323 points, closely approaching the prominent 6,367 points recorded in the previous year.
At the same time, the market turnover continued its upward trend, marking the highest on a year-on-year basis. The turnover experienced a 4.75% increase, reaching Tk1655 crore compared to the preceding session.
The Blue-chip index, DS30, rose by 9 points, reaching 2,133 points, while the Shariah-compliant stocks’ index, DSES, increased by 6 points, reaching 1,377 points.
Of the total scrips traded, 261 advanced, 93 declined and 41 were unchanged.
Fundamentally weak stocks skyrocketing
The share prices of fundamentally weak companies on the stock exchange are rising without any justifiable reasons. Among these companies, a considerable number have either ceased operations, are operating partially, or are underperforming.
The share price of Khulna Printing & Packaging Ltd (KPPL), a concern of the Lockpur Group, witnessed an abrupt rise of 428% in the last three months although the factory has remained closed for around three years.
Standard Ceramics Industries recently opted for a temporary closure of its factory, citing a shortage of raw materials and inadequate gas and electricity supply. Surprisingly, the tableware manufacturer managed to secure the second position on the list of top ten gainers on the Dhaka Stock Exchange.
Additionally, the stock prices of Northern Jute Manufacturing Company, Appollo Ispat Complex, Nurani Dyeing & Sweater, Shepherd Industries, Ring Shine Textiles, Shyampur Sugar Mills, and Northern Jute Manufacturing Company are on the rise without any discernible justification.
In its daily market commentary, EBL Securities noted a surge in Dhaka stocks, propelled by heightened buying activity throughout the trading floor. The increased optimism among investors stemmed from the perception of appealing investment opportunities in the market after recent corrections.
The indices remained positive as opportunistic investors injected fresh funds into sector-specific issues, fueled by optimistic expectations linked to ongoing corporate earnings disclosures. Additionally, significant price appreciation in specific large-cap issues played a crucial role in prolonging the upward trend of the core index for consecutive sessions, said the brokerage house in its commentary.
On the sectoral front, engineering stocks contributed the highest 15.1% to the day’s turnover, followed by Pharma & Chemical at 12.9% and General Insurance adding 12.5%.
Almost all the sectors displayed positive returns, out of which Paper 4.8%, Financial Institution 4.2% and Engineering 3.2% exhibited the most positive returns on the bourse on Monday.
At the DSE, the top three most traded stocks were Orion Infusion, Bangladesh Thai Aluminium, and Fu Wang Food.
The port city bourse, Chittagong Security Exchange, also settled on green terrain. The selected indices (CSCX) and All Share Price Index (CASPI) surged by 111.5 and 187.4 points, respectively.
Source: The Business Standard