Vaccine optimism lifts stocks to 1 1.5yr high
The benchmark index of the Dhaka STOCK MARKET rose to its finest level within the last one . 5 years yesterday because of the energetic participation of institutional shareholders buoyed by the developing rollout of coronavirus vaccines.
The DSEX surged 109 points or 2.10 % before closing your day at 5,328.27, the highest since July 7 of 2019.
Investors, especially institutional shareholders have been pouring money in to the stock market following the UK, and the US started out administering vaccination of Covid-19, said a top official of a respected brokerage firm.
The mass immunisation has given investors hope that they are going to visit a easy rebound in the global economy, including Bangladesh, the broker said.
The UK administered the vaccines on December 8 and the US on December 14. Mass vaccination across the European Union started yesterday.
Since December 8, the DSEX rose 279 things, or 5.5 % and the turnover almost doubled.
The market value of the stocks in the DSE edged up 3.19 %, or Tk 13,603 crore to stand at Tk 439,397 crore yesterday.
Turnover, a crucial indicator of the marketplace, rose to Tk 1,521 crore, that was Tk 1,405 crore about the previous evening. Yesterday's turnover was the highest since September 2017.
However, the DSE documented a turnover of Tk 2,543 on June 28, but it was driven simply by a block trade for changing the possession of GlaxoSmithKline to Unilever.
"The marketplace has remained undervalued going back couple of months, and the pandemic intensified it," said Mir Ariful Islam, mind of research of Primary Finance Asset Management Enterprise.
"Now, investors are returning to the market."
The stock index usually remains in positive territory by the end of a calendar year.
"As the marketplace crossed the 5,200 level strongly and the turnover can be moving handsomely, we are hopeful that the marketplace will maintain a typical level in the upcoming a few months," Islam added.
The stock of Robi touched the circuit breaker on its second day of trading as it rose 50 % to Tk 22.50 as a result of higher demand.
Newly listed companies are permitted to rise a maximum of 50 per cent a day in the first two trading days, and the increase is capped at 10 per cent.
Robi, the second-largest cellular phone operator in Bangladesh, topped the gainers' list followed by SS Steel, LankaBangla Financing, Desh Garments and GPH Ispat.
Beximco Ltd was the most traded inventory with shares worthy of Tk 126 crore changing hands, accompanied by IFIC, Beximco Pharmaceuticals, Bangladesh Submarine Cables and LafargeHolcim Bangladesh.
Of the full total shares traded, 238 advanced, 66 declined, and 59 remained unchanged.
"Well-performing and blue-chip stocks have been rising the virtually all for the last few days, which is a good signal for the market," said Abdul Alim, a good stock investor.
Insurance stocks are going through a good correction after surging 80 to 90 per cent, and this is quite normal, he said.
Yesterday, Peoples Insurance shed the the majority of 6.72 per cent accompanied by Pioneer Insurance, Bangladesh Standard Insurance, Republic Insurance and Phoenix Insurance.
