Stocks Extend Rally as Trading Resumes After Eid Holidays

Dhaka stocks gained for the sixth straight session on Sunday, with the key index reaching a new high as investors continued to buy shares.

Trading resumed on Sunday after being closed on the occasion of Eid-ul-Azha since July 20. Eid-ul-Azha, one of the biggest Muslim religious festivals, was celebrated across the country on July 21.

However, trading on the DSE started on a 10am to 1pm schedule instead of the usual 10am to 2:30pm schedule due to the 14-day strict Covid restrictions imposed by the government since July 23.

DSEX, the main index of the Dhaka Stock Exchange, rose 0.29 percent or 19.17 points, closing at 6,424.21 points on Sunday. The DSEX gained 215.8 points in the last six sessions.

In 2013, the exchange launched the index under a free-float methodology developed by Standard and Poor’s with a view to replacing the then main index of the exchange, DGEN. The DGEN stood at 4,171.41 points when the DSEX launched in 2013.

The market remained mostly positive during the Sunday session as investors continued to buy shares, especially those of cement, banking and pharmaceutical companies.

Despite two-thirds of the companies’ stock prices falling, the market held up as the share prices of a number of large capitalized companies rose on Sunday.

Of the 374 scrips traded on the DSE on Sunday, 116 advanced, 237 fell and 22 remained unchanged.

Among the large cap companies, a surge in the share prices of British American Tobacco, Beacon Pharmaceuticals, Beximco Pharmaceuticals and GPH Ispat added 27 points to the DSEX.

Average share prices in the food, banking and pharmaceutical sectors rose by 2.7 percent, 0.8 percent and 0.4 percent, respectively.

EBL Securities said in its daily market commentary: “DSEX in the shortened trading window amid another lockdown hit an all-time high on Sunday. Investor sentiment was positive towards the stock market, with some investors opting for a portfolio rebalancing strategy ahead of the June year-end statement.”

Baraka Patenga Power, which debuted on July 15, hit the circuit breaker upper limit for the fourth trading day, closing at Tk 42.3 on Sunday.

The average share prices of the textile sector, non-bank financial institutions and non-life insurance declined by 2.5 percent, 1.6 percent and 0.8 percent, respectively.

DS30, a composite of 30 large capitalized companies, added 0.6 percent or 14.09 points and closed at 2,336.47 points on Sunday.

The DS30 index also hit a record high on the day.

Shariah Index DSES gained 0.43 percent, or 6.08 points, to settle at 1,393.84 points.

Sales on the DSE rose to Tk 1,354.7 crore on Sunday from Tk 1,264.5 crore in the previous session.

Saif Powertec led the revenue chart with shares worth Tk 68.25 crore switching hands that day.

British American Tobacco Company, BEXIMCO, BD Finance, Fu-Wang Ceramics, Active Fine Chemicals, GPH Ispat, GBB Power, IFIC Bank and LafargeHolcim Bangladesh were the other revenue leaders on the day.