DSEX rises for six weeks as banking stocks flex muscle

Dhaka stocks saw modest gains in the past week as mild profit-booking took place.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) rose over 62 points or 1% to settle at 5,813, which is the highest since January 17 the year.

It extended its winning streak in the past six weeks in a row, pulled up by the banking stocks.

The blue-chip comprising the DS30 index lost 8 points or 0.38% to 2,178 and the Shariah Index DSES was slightly down over 2 points or 0.18% to 1,272.

Among major sectors, IT, bank, life insurance, food and allied sectors showed positive performance in the week. Profit-booking pushed the tannery, telecom, engineering, pharmaceuticals and cement down.

Average turnover increased by 20% to Tk 1,685 crore. The banking sector dominated the turnover chart covering 18.28% of total turnover.

The rising turnover over the weeks attracted some inactive investors, helping the market to keep vibrant, stockbrokers said.

“Some investors, including institutional ones, bet on stocks as they found no other alternative investment options in the pandemic,” said an analyst.

Better-than-expected earnings declarations by some financial institutions surprised and attracted investors as well, he said.

Ahead of the national budget, the expectation of corporate tax cuts to help businesses recover the losses in the pandemic also contributed to the positive trend of the market, he added.

Beximco - the flagship company of Beximco Group - was the most- traded stock with shares worth Tk 700 crore, followed by Prime Bank, SAIF Powertec, British American Tobacco, LankaBangla Finance, Robi and National Feed Mills.