The broad index of the Dhaka Stock Exchange (DSE) crossed the 5,700-point mark on Sunday for the first time in nearly 22 months, as investors poured in fresh capital ahead of the fiscal year-end to take advantage of tax benefits.
The market opened the day's session on a positive note and the DSE broad index DSEX continued its upward trend till closure as investors remained buoyant. At the end of the session, the DSEX closed at 5,719 points, 1.18 per cent or 66.94 points up from the previous session. The DSE rose for four consecutive sessions, adding 165 points to the broad index.
S M Galibur Rahman, head of research and strategic planning at Shanta Securities, said the number of sellers declined significantly as the majority of investors were taking fresh positions. Many of them wanted to avail themselves of tax rebates by investing in listed securities. As investments must be made by June 30 for tax rebates, the market has persistently witnessed high turnover - above Tk 10 billion in recent sessions.
"Investors' intention to get a tax waiver was the main driver of the recent market rally," said Mr Rahman.
The companies that played a significant role in pulling the broad index include BRAC Bank, Pubali Bank, Square Pharmaceuticals, Beximco Pharmaceuticals, and Grameenphone.
Of them, BRAC Bank alone added 6.8 points to the broad index.
Meanwhile, BEXIMCO on Sunday emerged as the top gainer while also topping the chart of turnover leaders.
The company posted a turnover of Tk 1.05 billion while its stock price advanced 9.86 per cent to close at Tk 31.20 per share.
Insiders said the resumption of trading of Beximco Pharmaceuticals shares on the London Stock Exchange played a supportive role in the robust performance of BEXIMCO on the trading floor of the DSE.
Of the 394 issues traded, 213 advanced, 133 declined and 48 were unchanged, and the DSE posted a turnover of Tk 13.71 billion, 23.43 per cent up from the previous session.
All of the blue-chip stocks included in the DS30 index closed in the green and the index advanced 1.47 per cent or 31.41 points to 2,162.56 points. Market operators said a positive macroeconomic outlook helped restore investor confidence, which was reflected in the vibrant equity market.
Mr Rahman said fuel prices had almost returned to the pre-Iran war level, which would benefit the economy. Treasury rates also declined gradually. Subsequently, interest rates would fall, allowing breathing space for consumers.
"These factors jointly supported the equity market."
Investor participation concentrated mainly on the banking sector, which witnessed transactions of shares worth Tk 2.23 billion, constituting 16.3 per cent of the market turnover.
Daffodil Computers was the worst loser on Sunday after declining 4.25 per cent to close at Tk 146.40 per share on the DSE.
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