DSEX climbs to 21-month high, turnover hits 6-month high

The New Year 2021 has been strongly welcomed by the investors at the Dhaka Stock Exchange as the benchmark index stormed past 5,600, climbing 21-month high.

On Sunday, the first day of 2021, the DSEX Index accumulated massive gains of over 218 points or 4 percent to settle at 5619—the level not seen before March 19, 2019.

The index also saw the biggest single-day rise since March 19 this year when it climbed 371 points. The index gained for the sixth straight session in a row.

“The strong performance of the stock market was proof of increasing investor confidence on some major developments,” said an analyst at an investment bank.

A host of regions buoyed investor sentiment and helped shares continue to rally, said the analyst citing falling interest rate, vaccination progress and stimulus package implementation.

Trader Nazrul Islam said, “Investors are focused on the future. They don’t care about what is happening right now or what happened in the past.”

However, he said many were of the view that as the market digested the wounds sustained 10 years ago when it crashed. “Now it’s time to go up.”

A decrease in interest rates may prompt investors to move funds from the money market to the equity market. When interest rates have fallen significantly, consumers and businesses increase spending, causing stocks to rise, said another market analyst.

In April, the government announced Tk121,353 crore worth of stimulus packages to support the pandemic-damaged economy. Almost half of the fund was given out so far, according to a recent finance ministry report. The government is set to pour more funds to revive the economy faster than expected.

On Saturday, DGHS Director General ABM Khurshid Alam said the first consignment worth Tk 50 lakh would be sent tomorrow to bring the vaccine from India in January.

Turnover stood at Tk 1,925.7 crore, a jump of 24.78 percent over the previous session and highest since June 25, 2020 when it was Tk 2,543.2 crore

IFIC Bank---a concern of Beximco Group—was the most traded stock by volume with more than 8.4 crore shares changed hands. This is the highest ever transaction by a company in the history of the capital market.

All the sectors, led by cement, NBFI, engineering and Pharmaceuticals closed in the positive terrain.

“That a pandemic-induced economic shutdown of epic proportion has been digested with stocks ending the year on happy note is mind-blowing,” said, an investor adding: “2021 will be stunning."