Dhaka stocks gain for 5th day

Staff Correspondent | Published: 22:34, Jul 12,2020

 
 

Dhaka stocks advanced on Sunday, stretching the gaining streak to the fifth session as a section of investors, observing some recovery movements, increased investments in the market.

DSEX, the key index of the Dhaka Stock Exchange, increased by 0.93 per cent, or 37.85 points, to close at 4,099.42 points on the day.

The index on Sunday hit a fresh four-month high after March 12 when it was at 4,129.96 points.

The DSEX gained 118 points in the last five trading sessions.

After a slow movement in the first trading hour on the day, the core index began to gain and continued to climb until the end of the session as investors kept buying shares at lucrative prices, market operators said.

They said that prolonged dullness on the market amid the global coronavirus pandemic brought down share prices of almost all the companies to bottom.

Before the five-day rally, the index had been hovering at 3,960 points for more than a month, but investors had not invested in the market as the worsening coronavirus situation eroded their risk taking appetite.

But, institutional investors went for bargain hunting last week that encouraged a section of retail investors also to invest in the market, market operators said.

They said that the retail investors joined the rally as the floor price system introduced by the Bangladesh Securities and Exchange Commission prevented the share prices from falling below a certain level.

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

Besides, the BSEC asked last week 61 directors of 22 companies to comply with 2 per cent minimum shareholding rules, and investors assumed that the directors would buy shares that would raise share prices of the respective companies.

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.

But many investors are still concerned about the coronavirus situation and its possible impact on the economy.

The death toll from the deadly virus rose to 2,352 and the number of total cases of infection stood at 1,83,795 on Sunday.

EBL Securities in its daily market commentary said that the core index remained upward throughout the session with a slight correction in the first part of the session.

Investors continued their buying binge and reshuffled their portfolios at the lowest possible prices following the floor price system, it said.

Of the 349 scrips traded on the DSE on Sunday, 122 advanced, 59 declined, and 168 remained unchanged.

The turnover on the bourse inched down to Tk 346.96 crore on Sunday compared with that of Tk 347.47 crore in the previous trading session.

DSE blue-chip index DS30 increased by 1.04 per cent, or 14.34 points, to close at 1,383.71 points on the day.

The DSES index also gained 1.69 per cent, or 15.9 points, to settle at 954.87 points.

Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 17.53 crore changing hands on the day.

Bangladesh Submarine Cables Company, Square Pharmaceuticals, Beacon Pharmaceuticals, ML Dyeing, Indo-Bangla Pharmaceuticals, Orion Infusions, Orion Pharmaceuticals, Monno Ceramics and Grameenphone were the other turnover leaders.

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