Stocks maintain gaining streak for fourth straight day

Stocks in Bangladesh yesterday maintained their gaining streak for the fourth day consecutively riding on investors' increased interest in shares of food and allied, pharmaceutical, financial and telecommunication companies.

The DSEX, key index of the Dhaka Stock Exchange (DSE), advanced by 76.41 points, or 1.36 percent, to 5,692.06 points in what was its highest gain April 17, when the index stood at 5,763.77 points.

Likewise, the CASPI, the all share price Index on the Chittagong Stock Exchange (CSE), gained 180.73 points, or 1.12 percent, to close 16232.12 points, with investors terming the advance as "natural" since the markets suffered losses amid recent panic sales.

"The market is recovering from the unusual downturn that we saw earlier. From this perspective, the latest increase seems okay," said Kohinoor Hossain Masum, an investor.

He said stocks fell in previous trading sessions as many investors sold their shares due to rumour-driven panic.

Daily turnover of the DSE, which indicates the market's liquidity, stood at Tk 8,17.77 crore, posting a 15 percent increase from the previous day.

"Market movement was driven by positive changes in the market cap of paper and printing, life insurance, and food and allied scrips amid negative changes in the market cap of travel and leisure, cement, and tannery scrips," Shanta Securities said in its daily market review.

Of the shares traded, some 259 advanced, 98 declined and 44 remained unchanged.

Gainers outpaced losers at the CSE too.

In its daily market update, BRAC EPL Stock Brokerage Ltd said all large-cap sectors posted positive performances yesterday.

Saiful Islam, president of the DSE Brokers Association, said the market lost nearly 1,000 points over the past few months.

"After such a big erosion, it is natural and rational that the market will bounce back," he said. "It is too early to make any judgment based on the increase. The market was not functioning properly owing to the floor prices for shares. So, we should give some time to the market to stabilise."

The Bangladesh Securities and Exchange Commission introduced floor price for shares first in March 2020 to contain the freefall of share prices and protect the interest of small investors.

The regulator lifted the bar a year later but re-imposed in July 2022.

The BSEC began removing the floor prices from January this year. Still, floor prices exist for shares of six companies.

At the DSE, shares of two concerns of Orion Group -- Orion Infusion Ltd and Orion Pharma -- topped the turnover board followed by Lovello and Asiatic Lab.

Shares of Orion Infusion gained 6.34 percent to reach Tk 674.50 while that of Orion Pharma advanced 4.65 percent to Tk 74.2 yesterday.