Stocks cross the 7,000 mark after nine days

KEY MARKET INDICATORS ON TUESDAY:

• DSEX rose 1% to reach 7,048 pts
• DS30 jumped 0.97% to 2,660
• DSE turnover reached Tk1,331 crore
• Caspi jumped 207 pts to close at 20,610

The benchmark index, DSEX, of the Dhaka Stock Exchange (DSE) on Tuesday crossed the psychological threshold of the 7,000 mark after nine days as investors showed optimism over the meeting held between the central bank and the securities regulator at the finance ministry.

Besides, the new direction of the Bangladesh Securities and Exchange Commission (BSEC) regarding the compliance of listed firms with the minimum shareholding rule also helped to boost the indices on Tuesday.

DSEX rose 70 points or 1% to reach 7,048, while the blue-chip index, DS30, jumped 0.97% to 2,660 points.

Caspi, the main index of the port city bourse Chittagong Stock Exchange also jumped 207 points to close at 20,610.

EBL Securities said in its daily market commentary, investors' activity was firmly concentrated in some selective low-cap issues following the news that the BSEC has directed 25 companies to hold the required 30% stake for sponsor and director within one month.

Besides, the capital market monitoring committee of the finance ministry conducted a meeting with the Bangladesh Bank and the BSEC to solve the proposals for developing the capital market.

Ministry sources said, at the meeting they discussed positively concerning proposals regarding bank exposure, reducing corporate tax, bond investment and special funds to support the capital market. 

But in the meeting, no concrete decision was made. The committee sought further information regarding these issues and hence, it will arrange another meeting at the end of this month.

Riding on the optimism, participation of investors increased by 50% on Tuesday, compared to the previous session, which caused the DSE turnover to increase and reach Tk1,331 crore.

On the sectoral front, banking scrips exerted the most turnover followed by pharmaceutical and miscellaneous stocks. 

Most of the sectors gained price, out of which non-bank financial institutions, cement, and textile observed the most returns. 

On the other hand, only tannery observed correction on the premier bourse on Tuesday. 

Out of the 375 issues traded, 274 advanced, 69 declined, and 32 remained unchanged on the DSE trading floor.

According to the EBL Securities daily market review, Meghna Condensed Milk topped the gainers' table, where its price increased 10% at the DSE, which was followed by Meghna PET, Khan Brothers PP Woven, and Tamijuddin Textile.

Aman Feed was the worst share among all listed companies, where its share price fell 3.6%, which was followed by Asia Insurance, and GBB Power.