Market extends gains as geopolitical tensions ease a bit
The easing of geopolitical tensions and the recent approval of an IMF loan helped alleviate investors’ fears over economic uncertainty, according to the market insiders
The country's premier bourse continued its recovery today (24 June), extending its gaining streak for the second consecutive session following Sunday's sharp fall.
The easing of geopolitical tensions and the recent approval of an IMF loan helped alleviate investors' fears over economic uncertainty, according to the market insiders.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) rose 22 points to close at 4,717, while the blue-chip DS30 added 8 points to settle at 1,771. Of the traded stocks, 236 advanced, 92 declined, and 73 remained unchanged. Turnover surged by 35% to Tk372.70 crore, up from the previous session.
According to Shanta Securities' daily market review, the rally was largely driven by gains in travel and leisure, paper and printing, and non-bank financial institutions, despite losses in the tannery and life insurance sectors.
Keep updated, follow The Business Standard's Google news channel
Over the past two sessions, the DSEX has recovered 40 points after shedding 76 points on Sunday, when US airstrikes on Iranian nuclear sites intensified tensions over Iran-Israel fight.
EBL Securities said in its daily market commentary, the capital bourse extended its recovery mode for the second consecutive session as the easing of geopolitical tensions following the announcement of a ceasefire in the ongoing Middle East conflicts aided to regain some investor confidence over the market's momentum.
The market remained upbeat throughout the session, while buyer dominance prompted the majority of scrips to settle in the positive terrain, it added.
Moreover, the approval of the $1.3 billion IMF loan tranches also helped to instill some broader positive sentiment among investors regarding the market's outlook, EBL Securities said.
On the sectoral front, food issues exerted the highest by 23.5% in total turnover, followed by pharma with 11% and textile with 9.9%.
Lovello Ice-cream was the top traded stock, which was followed by Beach Hatchery and Square Pharma.
Financially weak and loss-making firms dominated the top gainers' list, led by Indo-Bangla, which rose 10% to Tk11 per share, followed by Yeakin Polymer with a 9.73% gain to Tk12.40, and Safko Spinning, up 9.37% to Tk10.50.
On the other end, GSP Finance was the day's top loser, dropping 7.69% to Tk3.6. First Finance followed, falling 6.66% to Tk2.8, and Phoenix Insurance lost 5.64% to Tk23.4.
The port city bourse, Chittagong Stock Exchange (CSE), also settled on a positive zone. The CSCX and CASPI indices rose by 55 and 96 points, respectively.
