Stocks rise for second consecutive day, buoyed by lower-priced blue chip stocks

Stocks Rally as DSE Benchmark Index Exceeds 5,300 Mark

Are you looking to invest in the stock market but unsure of where to start? Well, look no further! The recent rally in the Dhaka Stock Exchange (DSE) is a clear indication that now might be the perfect time to jump in and make some profitable investments.

The benchmark index of the DSE, the DSEX, has exceeded the 5,300 mark after a month, thanks to buoyant investors putting fresh bets on large-cap stocks. This surge in the market comes after a historic low earlier this year, making it an opportune time for investors to take advantage of undervalued stocks.

One of the key factors driving this rally is the recent approval of a $4.7 billion loan from the International Monetary Fund (IMF) to Bangladesh. This loan approval is a significant development for the country, which has been facing challenges with dwindling foreign exchange reserves. Additionally, the news that the proposed capital gains tax on individual investors may be modified in the final budget has also boosted investor confidence.

Multinational companies and blue-chip stocks have become particularly attractive to investors, as they have seen sharp corrections in recent times, making them more affordable. Companies like Beximco Pharma, Robi, Grameenphone, BAT Bangladesh, and Beacon Pharma have all seen substantial price hikes, contributing to the market’s positive performance.

Institutional and foreign investors are showing a keen interest in blue-chip stocks, as these companies are well-governed and have maintained profit growth even in challenging business environments. With the deadline for availing tax rebates from secondary market investments approaching on June 30th, investors are eager to make the most of this opportunity.

The market turnover has crossed the Tk 6 billion mark, with sectors like telecom, engineering, cement, and general insurance posting significant gains. The DS30 index and the DSES index have also surged, indicating a broad-based rally across different sectors.

So, if you’ve been thinking about dipping your toes into the stock market, now might be the perfect time to do so. With the market showing signs of recovery and potential for further growth, it’s a great opportunity to make some profitable investments. Stay informed, do your research, and make smart investment decisions to capitalize on the current market momentum.

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