Stocks inch up for 5th day on some institutional buying

Staff Correspondent | Published: 23:01, Jun 29,2020


Dhaka stocks inched up for five trading sessions on Monday, as a few investors moved to buy shares at the regulator-set floor prices while the other investors remained unenthusiastic due to the current pandemic situation in the country.

DSEX, the key index of the Dhaka Stock Exchange, added 0.18 per cent, or 7.41 points, to close at 3,981.64 points on the day.

The DSEX added just 19.4 points in the last five sessions.

A few investors especially the institutional ones might buy shares at the current lowest possible prices under the floor price system introduced by the Bangladesh Securities and Exchange Commission to check free fall on the market amid the pandemic, market operators said.

They said that the investors might take the advantage of the current stagnant market situation resulted from the coronavirus pandemic and the regulator-enforced floor price restriction.

Due to the restriction on price fall, investors failed to sell shares of more than two-thirds of the listed companies that helped the market remain afloat, market operators said.

Besides, some investors were excited as

Unilever entered the market through buying 82 per cent of Glaxosmithkline (GSK) Bangladesh shares for Tk 2,020 crore on Sunday.

The formation of around Tk 1,700 crore in special funds for investing in the market by 14 banks might also encourage few investors.

The overall market scenario, however, remained dull as most of the investors were indifferent to the market.

Investors are now concerned more about their lives, jobs and earnings as the pandemic continues claiming people and hitting the economy hard.

The death toll from the deadly virus rose to 1,783 and the number of total cases of infection stood at 1,41,801 on Monday.

Investors were uncertain about when the country would recover from the economic fallout of the pandemic.

Besides, the media reports that the owners of Crest Securities, a DSE brokerage house, went into hiding after embezzling investors’ fund hit further the investors’ already-shattered confidence, market operators said.

Some large investors preferred the DSE block market for transactions as they could buy shares on the block market even below the floor prices, they said.

The turnover on the bourse declined to Tk 154.66 crore on Monday compared with that of Tk 2,543.25 crore in the previous trading session. The turnover on the bourse had surged on Sunday due to block transactions of shares of GSK Bangladesh and UPGDCL.

Of the total turnover on Monday, Tk 69.17 crore came from block transactions.

EBL Securities said, ‘Investors remained cautious due to the pandemic situation which is worsening day by day and continues damaging the country’s economy while creating an uncertainty of the recovery from the disaster.’

Of the 298 scrips traded on the DSE on Monday, 19 declined, 40 advanced and 239 remained unchanged.

DSE blue-chip index DS30 gained 0.28 per cent, or 3.78 points, to close at 1,335.51 points on the day.

The DSES index also added 0.19 per cent, or 1.82 points, to settle at 923.56 points.

Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 16.34 crore changing hands on the day.

Want stories like this in your inbox?

Sign up to exclusive daily email