Dhaka stocks advanced in the past week as a section of investors continued to display an appetite for bargain hunting despite a surge in coronavirus infections in the country.
DSEX, the key index of the Dhaka Stock Exchange, gained 1.88 per cent, or 74.83 points, to close at 4,061.57 points on the last trading session on Thursday.
The DSEX gained 101 points in the last three weeks.
After a slight loss on the first trading session on Sunday, the key index gained in the remaining four sessions of the week with significant gains in the last two sessions as a section of investors continued bargain hunting, market operators said.
The DSE on Wednesday returned to its normal trading hours from 10:30am to 2:30pm instead of the revised hours of 10:00am to 1:00pm set by the bourse due to the COVID-19 outbreak in the country.
The market operators said that share prices of more than two-thirds of the scrips remained stuck on the floor price, a regulatory system put in place for checking free fall, that provoked some investors to buy shares.
This in response turned the mood on the floor as more investors joined the rally encouraged by some positive movements on the market.
In addition, the Bangladesh Securities and Exchange Commission on July 2 asked 61 directors of 22 companies to ensure 2 per cent minimum shareholding within 45 days.
Some investors saw this as an opportunity to buy shares based on the expectation that the directors would now buy shares to comply with the securities rules that would raise share prices.
However, the majority of investors still remained cautious about the pandemic situation in the country that continued to take a toll on the economy.
The number of deaths from the virus rose to 2,238 with the total cases of infection reaching 1,75,494 until Thursday.
Out of the total 360 shares traded last week, prices of 142 advanced, 22 declined and 194 remained unchanged.
EBL Securities in its weekly market commentary said, ‘Investors went for buying some undervalued stocks at the lowest possible prices riding on the regulatory attempts for ensuring mandatory shareholding rules.’
Some investors opted to inject fresh funds while others remained worried over the coronavirus pandemic situation in the country, it said.
Daily average turnover on the DSE declined to Tk 188.11 crore in the past week compared to the turnover of Tk 833.70 crore in the previous week.
The huge turnover seen in the previous week was due mainly to a massive block transaction between Unilever and GlaxoSmithKline.
DS30, the blue-chip index of the DSE, added 2.23 per cent, or 29.87 points, and closed at 1,369.37 points.
Shariah index of the bourse DSES also increased by 1.83 per cent, or 16.85 points, over the week to close at 938.96 points.
Square Pharmaceuticals topped the turnover chart with shares worth Tk 79.21 crore traded in the past week.
Beximco Pharmaceuticals, Beacon Pharmaceuticals, Grameenphone, the Bangladesh Submarine Cable Company, Wata Chemicals, Indo-Bangla Pharmaceuticals, Orion Pharmaceuticals, the Bangladesh Export Import Company and Exim Bank were the other turnover leaders.
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