Stocks hit nearly 4-month high

Staff Correspondent | Published: 22:50, Jul 09,2020

 
 

Dhaka stocks advanced on Thursday, extending the gaining streak to the fourth session as a section of investors shrugged off the current pandemic gloom and kept buying shares at lucrative prices.

DSEX, the key index of the Dhaka Stock Exchange, advanced by 0.66 per cent, or 26.91 points, to close at 4,061.56 points on the day.

Thursday’s index was the highest after March 12 when it was 4,129.96 points.

The DSEX gained 80 points in the last four trading sessions.

In line with the previous session, the key index started gaining from the very  beginning of Thursday’s session and maintained the momentum without any resistance as a section of investors went for bargain hunting, market operators said.

They said that the recent positive movements might encourage more investors to buy shares at lucrative prices in sector specific stocks despite the impact of worsening pandemic situation.

Investors showed some agility on the trading floor as the ultimatum issued by the Bangladesh Securities and Exchange Commission for ensuring minimum shareholding by the non-compliant directors within 45 days also encouraged them, they said.

The media reported on Monday that the BSEC asked 61 directors of 22 companies to comply with 2 per cent minimum shareholding rules.

Before the two days of notable gains, the DSEX had remained near standstill since June 2 because of the deterioration in the COVID-19 situation in the country that sapped investors’ buying appetite, and the BSEC-imposed floor price system that prevented investors from selling shares.

The BSEC on March 19 introduced the floor price mechanism to check free fall on the market amid the pandemic.

Besides, the media also reported that 14 banks formed special funds worth Tk 1,700 crore to invest in the market that might also encourage some investors to buy shares of banks, market operators said.

However, many other investors remained on the sidelines as they saw no sign of improvement in the coronavirus situation in the country.

The death toll from the deadly virus rose to 2,238 and the number of total cases of infection stood at 1,75,494 on Thursday.

Bata Shoe Limited recommended no final dividend for 2019 due to the worldwide as well as the countrywide effect of COVID-19, according to a DSE web post.

However, 125 per cent cash dividend which has already been paid as interim dividend is the final dividend for the year ended on December 31, 2019, it said.

Of the 349 scrips traded on the DSE on Thursday, 103 advanced, 45 declined, and 201 remained unchanged.

The turnover on the bourse advanced to Tk 347.47 crore on Thursday compared with that of Tk 231.05 crore in the previous trading session.

DSE blue-chip index DS30 increased by 0.87 per cent, or 11.86 points, to close at 1,369.36 points on the day.

The DSES index also gained 1.11 per cent, or 10.32 points, to settle at 928.63 points.

Square Pharmaceuticals led the turnover chart with its shares worth Tk 66.18 crore changing hands on the day.

Grameenphone, Beximco Pharmaceuticals, Beacon Pharmaceuticals, Nahee Aluminum, Bangladesh Submarine Cables Company, Orion Pharmaceuticals, FAR Chemicals, Bangladesh Export Import Company and United Power Generation Company were the other turnover leaders. 

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