DSE Weekly Review

Stocks gain slightly but mood remains subdued

Staff Correspondent | Published: 23:21, Jul 04,2020

 
 

Dhaka stocks gained slightly in the past week as only a handful of investors went for buying some undervalued shares while most others remained depressed over the economic impacts of a deepening pandemic crisis.

DSEX, the key index of the Dhaka Stock Exchange, gained 0.44 per cent, or 17.45 points, to close at 3,986.75 points on the last trading session on Thursday after gaining 8.7 points in the previous week.

Trading on the market remained shut on July 1 due to a bank holiday.

The key index gained in the first three sessions during the four-day trading week as only a few investors opted to buy shares at the lowest possible prices.

However, overall trading in the past week remained dull as most investors preferred to stay on the sidelines because of the current pandemic crisis that has eroded the investors’ appetite for taking any risks.

The highly contagious coronavirus, which was first detected in the country on March 8, has been spreading rapidly with the country reaching near record rates of daily reported infections, dealing a hard blow to business activities.

Death toll from the deadly virus rose to 1,926 in the country while the number of cases reported till Thursday reached 1,53,277.

Although share prices of more than two-thirds of companies had hit the bottom ceiling, the investors showed no enthusiasm over buying the undervalued shares.

The Bangladesh Securities and Exchange Commission imposed a floor price restriction on March 19 to check the free fall in share prices that eventually brought the market to a standstill.

Share prices of only 48 companies, mostly those which were small and fundamentally weak, witnessed a rise over the past week.

Out of the total 360 shares traded last week, prices of 18 declined, 48 advanced and 281 remained unchanged.

EBL Securities in its weekly market commentary said, ‘DSEX, the prime index of the capital bourse remained flat throughout the week as most of the investors remained cautious due to the pandemic situation which is worsening day by day and continued to upsurge with looming uncertainty about economic growth.’

Daily average turnover on the DSE jumped to Tk 833.70 crore in the past week compared to the turnover of Tk 56.87 crore in the previous week mainly due to acquisition of 82 per cent shares of GlaxoSmithKline by Unilever on the block market.

Unilever Overseas Holdings BV, a concern of Unilever, on June 27 bought 98,75,144 shares of GSK Bangladesh for Tk 2,020 crore.

DS30, the blue-chip index of the DSE, added 0.69 per cent, or 9.18 points, and closed at 1,339.49 points.

Shariah index of the bourse DSES also increased by 0.28 per cent, or 2.61 points, over the week to close at 922.11 points.

Beximco Pharmaceuticals topped the turnover chart with shares worth Tk 49.7 crore traded in the past week.

The Bangladesh Submarine Cable Company, GlaxoSmithKline, IndoBangla Pharmaceuticals, Square Pharmaceuticals, Central Pharmaceuticals, Wata Chemicals, Linde Bangladesh, ACME Laboratories and City Bank were the other turnover leaders.

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