Stocks continue bull run despite lockdown extension

DSE beats lockdown fear

• Turnover rose 86% to Tk1,299.84 crore on Tuesday
• Block market and insurance sector jointly contributed 62% of the total turnover
• Investors took highest returns from Cement, Ceramics and Service sectors
• In the last 6 days, DSEX rose by 5% to 5,421 points
• During this period, DSE market capital increased 4%

Stocks continued a bull run for the last six days as investors felt confident about investing more during the ongoing countrywide lockdown placed to curb the surging Covid-19 cases.

On Tuesday, DSEX, the main index of the Dhaka Stock Exchange (DSE) rose by 1.34% or 71.86 points to reach 5,421, Shariah index increased by 1.42% to 1,233, and the blue-chip index DS30 gained 1.76% to reach 2,082.

On that day, the DSE total turnover increased by 86% to Tk1,299.84 crore, which is a three-month high.

The block market and the insurance sector dominated the DSE total turnover, where they have jointly contributed 62%.

With the surging index, 193 companies' share prices advanced, 98 declined and 63 remained unchanged at the DSE.

CASPI, the main index of the Chittagong Stock Exchange (CSE) also gained 1.38% or 214 points to reach 15,685. The turnover also increased by 107% to Tk71.49 crore.

Meanwhile, the government has issued a gazette extending the ongoing countrywide lockdown for another seven days till 28 April.

EBL Securities said in its daily market commentary report that the index sparked a rally based on investors' high optimism as the recent market momentum showed increased confidence.

Beating worries of increasing Covid-19 cases and extension of the lockdown, the investors turned their focus to the sector-wise low-priced scrips as they believe the continuation of industrial activities will continue to drive economic resurgence, the market commentary added.

Meanwhile, investors received the highest return of 4.1% from the cement sector, where general insurance saw price correction on Tuesday as the sector surged in the last several days.

However, Eastern Insurance secured the top position with a 9.93% gain in its share price on the top ten gainers' list, while Continental Insurance was the top loser with a 5.81% share price fall at the DSE.

In the DSE's block market, 27 companies' shares worth Tk402.71 crore were traded. In which, the trade value of Grameenphone shares was Tk123.84 crore, Provati Insurance Tk127.28 crore and United Power Tk125.10 crore.

The block market is a place where the sale or purchase of securities takes place at an arranged price between two parties.

In the script-wise turnover chart, Beximco Limited secured the top position with an 11.39% contribution to the DSE total turnover. Its share price also increased by 4.77% to Tk85.7 each on Tuesday.