Dhaka stocks gained for the fifth consecutive session on Wednesday as a section of investors continued buying shares at bargain prices while the others remained cautious due to the announcement of weak financial results by a number of companies amid the coronavirus pandemic.
DSEX, the key index of the Dhaka Stock Exchange, added 0.35 per cent, or 14.66 points, to close at 4,171.20 points on the day.
The DSEX gained 94.5 points in the last five sessions.
The key index opened on a positive note but went down in the mid-session before finishing the session with a marginal gain.
Market operators said that the market had been rising gradually from the beginning of July that attracted more investors to the market.
Share prices of almost all companies plunged in the recent market rout that provoked a section of investors to go for bargain hunting, they said.
They said that insurance companies and pharmaceutical companies continued to be the key focus of the investors’ attention.
Of the 45 traded Insurance companies, 38 advanced, six issues declined and one remained unchanged.
Despite the coronavirus crisis, the country’s economic activities were gradually reopening that might encouraged some investors to invest in the capital market.
Besides, the floor price restriction which was imposed on March 19 by the Bangladesh Securities and Exchange Commission assured investors that the prices of companies’ shares would not fall below a certain level.
Market operators said that the Bangladesh Bank announced an expansionary monetary policy for the financial year 2020-21 to revive the economy from the pandemic fallout that also encouraged investors.
EBL securities in its daily market commentary said, ‘The market saw some volatility but finally managed to stay into green zone as opportunistic investors continued to take fresh positions at the lowest possible prices following current floor price system.’
‘The ongoing quarterly earning declarations from several scrips have failed to meet the investor’s expectations, which caused a decline in the market participation,’ it said.
Companies continued declaring weak financial results in the pandemic time that discouraged some investors to invest in the market.
Profits of a number of banks including Dutch-Bangla Bank, Pubali Bank and Premier Bank declined in the January-June period compared with that in the same period in the previous year.
ICB Islami Bank and Standard Bank incurred losses in the January-June period.
The coronavirus situation in the country has remained a heavy drag on the market.
The death toll from the deadly virus rose to 3,035 and the number of total infections stood at 2,32,194 as of Wednesday.
The average share prices of general insurance, pharmaceutical and energy sectors advanced by 5.5 per cent, 0.3 per cent and 0.1 per cent respectively.
Of the 344 scrips traded on the DSE on Wednesday, 126 advanced, 58 declined, and 169 remained unchanged.
The turnover on the bourse declined to Tk 399.52 crore on Wednesday compared with that of Tk 444.6 crore in the previous trading session.
The DSES index added 0.08 per cent, or 0.79 points, to settle at 964.65 points.
DSE blue-chip index DS30, however, lost 0.05 per cent, or 0.75 points, to close at 1,401.79 points on the day.
Eastern Insurance Company led the turnover chart with its shares worth Tk 15.03 crore changing hands on the day.
Pioneer Insurance, Paramount Insurance, Beximco Pharmaceuticals, Sonar Bangla Insurance, Generation Next, Dhaka Insurance, Grameenphone, Fine Foods and British American Tobacco were the other turnover leaders.
Pioneer Insurance Company gained the most on the day with a 9.89-per cent increase in its share prices while Sonali Paper and Board Mills was the worst loser, shedding 8.12 per cent.
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