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Stocks gain for 8th day

Staff Correspondent | Published: 21:41, Aug 04,2020

 
 

Dhaka stocks advanced for the eighth straight day on Tuesday as investors continued buying shares as the Bangladesh Bank declared an expansionary monetary policy amid the coronavirus pandemic.

DSEX, the key index of the Dhaka Stock Exchange, gained 0.63 per cent, or 27.29 points, to close at 4,299.10 points on the day.

The DSEX added 222.37 points in the last eight sessions, the longest rally seen after June last year.

Tuesday’s index was the highest after March 5, 2020 when the index was at 4,384.48 points.

The market opened on Monday after holidays for Eid-ul-Azha, one of the largest Muslim religious festivals celebrated in the country on August 1.

Market operators said that the key index witnessed a downward trend at the beginning on Tuesday as some investors went for profit-booking share sales after a continued rise in share prices.

But, it moved upward soon after to finish the session with a notable gain as investors kept buying shares amid optimism, they said.

They said that the BB on July 29 unveiled an expansionary monetary policy for the fiscal year 2020-2021, bringing down the bank rate to 4 per cent from 5 per cent and repo rate from 5.25 per cent to 4.75 per cent to make funds available for banks at a cheaper rate.

Besides, the media reported that the monthly inflow of remittance hit an all-time high in July for Eid-ul-Azha, with the figure reaching almost $2.60 billion.

So, fund flow to the financial market is expected to increase in the coming days and a good portion of the money may divert to the country’s capital market, market operators said.

EBL Securities in its daily market commentary said, ‘The market has remained cheerful as the Bangladesh Bank declared an expansionary monetary policy to revive the country’s economy from the pandemic fallout. Moreover, investors expected that the banks and financial institutions would invest in the capital market to get higher profits.’

Besides, the Bangladesh Securities and Exchange Commission has directed the listed companies to comply with 2 per cent minimum shareholding and 30 per cent joint shareholding rules that drew attention of many investors.

The market has been showing positive momentum from the beginning of July as investors saw some positive movement in the macroeconomic activities.

In addition, investors’ confidence appeared to grow amid some punitive measures taken by the regulator against some wrongdoers in recent days, market operators said.

The market regulator has also taken some steps to improve the market condition.

A section of investors still remain on the sidelines as coronavirus cases continue rising across the country.

The death toll from the deadly virus rose to 3,234 and the number of total infections stood at 2,44,020 as on Tuesday.

Of the 344 scrips traded on the DSE on Tuesday, 147 advanced, 116 declined, and 91 remained unchanged.

The turnover on the bourse advanced to Tk 676.65 crore on Tuesday compared with that of Tk 672.36 crore in the previous trading session.

The DSES index added 0.66 per cent, or 6.57 points, to settle at 999.71 points.

DSE blue-chip index DS30 gained 0.83 per cent, or 12.09 points, to close at 1,454.88 points on the day.

Pioneers Insurance Company led the turnover chart with its shares worth Tk 24.02 crore changing hands on the day.

Beximco Pharmaceuticals, Square Pharmaceutics, LafargeHolcim Bangladesh, Grameenphone, Indo-Bangla Pharmaceuticals, Active Fine Chemicals, Khulna Power Company, Eastern Insurance and Silco Pharmaceuticals were the other turnover leaders.

FAS Finance gained the most on the day with a 10-per cent increase in its share prices while Simtex Industries was the worst loser, shedding 5 per cent.

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