Stocks rise, Dominage hits 260%

Dhaka stocks experienced a relatively upbeat session on Thursday as indices and trading volumes increased.

The benchmark DSEX index recorded an increase of over 24 points or 0.48% to settle at 5,094 after hitting a high of 5,102 and low of 5,087.

Investors' hopes of the market rally extended riding on Covid-19 vaccination and economic recovery due to the financial stimulus package undertaken by the central bank to weather the pandemic fallout, according to analysts.

On the other hand, the DSES index rose almost 6 points or 0.50% to 1,169. The DS30 index moved 8 points or 0.45% up to 1,775.

“Stimulus packages remain key to risk appetite,” said an analyst at an investment bank. Investors were also watching the development on the vaccination, he added.

Trading volumes saw a stride to shares worth Tk936 crore, an increase of 13.48% over the previous session. General insurers contributed over 25% to the total volume.

Engineering sector that rose about 2% was the star performer of the day, led by Dominage Steel Building Systems.

The prefabricated steel structure building maker continued to climb since its debut as its share prices skyrocketed by 259% in seven trading days despite its declining earnings. It soared 9.78% to over Tk32.90 a share, making it the top gainer in the day.

Telecom, and food and allied sectors also performed well while other sectors remained almost flat apart from the IT sector that shed 1.5%, driven by Aamra Networks Ltd.

Drug making giant Beximco Pharmaceuticals topped the turnover list with shares worth Tk51.69 crore, eliminating Beximco Ltd after several weeks.

The two companies of Beximco Group were followed by Rupali Insurance, IFIC Bank, Fortune Shoes, Republic Insurance, Northern Insurance and City Bank.

Al-Haj Textile plunged at more than 7% following news of its weak corporate earnings.