As the market has maintained a rising trend, investor confidence grew, said a stock broker.
Now many are investing into banking stocks, fuelling the index, he said, adding that paid-up capital of banking stocks was higher, for which the sector had a big impact on the index.
If investors invest into stocks which do not have good performance records, they will incur losses and so should be careful, the broker added.
The DSE s turnover, an important indicator of the market, surged 13.49 per cent to Tk 2,365 crore.
At the bourse, 163 companies stocks rose, 143 fell and 58 remained the same.
Northern Insurance topped the gainers list rising 9.98 per cent followed by Pragati Life Insurance, Green Delta Life Insurance Company, Pioneer Insurance and Progressive Life Insurance Company.
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Stocks break 8-day gaining streak Star Business Report Star Business Report
Stocks dropped yesterday after rising for eight consecutive days thanks to a profit booking tendency among investors.
The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), fell 10 points, or 0.18 per cent, to stand at 5,829.
As the market was on a rising trend the last couple of days, most stocks were up by at least 8 per cent to 15 per cent, so investors are taking in their profits now, said a stock broker.
This is a positive thing because when investors make profit, they get the confidence to invest more, he said, adding that the market s turnover was rising, which meant that investors participation was still strong.
Stock rally carries on
Star Business Report
Star Business Report
The stock market continued to rise for a sixth day yesterday, sans the two-day weekend, while turnover almost doubled thanks to an increase in the participation of investors despite a deterioration of the coronavirus pandemic.
The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), surged by 71 points, or 1.34 per cent, to stand at 5,421.78 yesterday.
Turnover, another important indicator of the market, rose 87 per cent to Tk 1,299 crore.
The scope to make easy money is the most important and biggest reason for the Bangladesh market rally, which is also common in stock markets around the world, said Md Moniruzzaman, managing director of IDLC Investments.
Stock market newcomers lose the most Star Business Report Star Business Report
Newly listed companies suffered the biggest hits in the stock market yesterday as most had become overvalued in recent times.
Five such firms ended up in the top losers list.
Meanwhile, Mir Akhter Hossain exhibited a break from norms and continued to be traded on in the second day past its appearance.
Normally, a new company remains in limbo on the first few days upon arrival due to a lack of sellers in the midst of a huge number of buyers.
The overvaluation should not have occurred, said a top official of a merchant bank.