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Stocks soar for 2nd day as rally attracts more investors

Staff Correspondent | Published: 23:05, Aug 13,2020

 
 

Dhaka stocks soared for the second day on Thursday as more investors went for buying shares amid a rally on the market.

Market operators said that a gradual reopening of the economy amid the coronavirus pandemic and investors’ growing confidence in the regulator contributed to the recent surge after a prolonged downward trend.

DSEX, the key index of the Dhaka Stock Exchange, advanced by 1.5 per cent, or 69.94 points, to close at 4,703.32 points on Thursday after gaining 100.32 points in the previous session.

The DSEX gained 626.5 points in the last 14 days with just a one-day fall.

Thursday’s index was the highest after February 20 when it was at 4,733.14 points.

In line with the previous session, the key index started soaring from the very beginning of the day’s session, and the vibe continued until the end of the session.

Market operators said that investors’ growing confidence was a driving force in the recent rally.

The new commission has taken a number of steps and punished some wrongdoers that helped restore the investors’ confidence in the regulator to some extent, they said.

Stock market regulator Bangladesh Securities and Exchange Commission has recently asked the listed companies and their directors to comply with 30 per cent joint shareholding and 2 per cent minimum shareholding rules.

The continued surge in share prices pulled more investors to the market.

Turnover on the bourse advanced to Tk 1,207.7 crore on Thursday compared with that of Tk 1,120.38 crore in the previous trading session.

If the GlaxoSmithKline‘s share acquisition-centric surge in turnover on June 26 is excluded, the market saw highest turnover on the day after September 18, 2017 when it was at Tk 1,525.89 crore.

EBL Securities in its daily market commentary said, ‘The securities regulator’s recent tough stance on ensuring compulsory 2 per cent minimum shareholding by each director of the listed companies had also a positive impact on the market. Moreover, some positive macro indicators cheered the investors to take position on large-cap stocks.’

Few banks have started investing in the market gradually that also supported the gain.

The country’s economy has started recovering with a record surge in export earnings and remittance in recent times.

Besides, the media reported that the country’s economy grew by 5.24 per cent in the last fiscal year 2019-2020 despite the coronavirus outbreak.

The expansionary monetary policy for the fiscal year 2020-2021, unveiled the Bangladesh Bank on July 29, is also expected to increase fund flow to the financial market.

Share prices of all the traded banks increased on Thursday.

After a couple of days of fall, insurance companies surged on the day. Share prices of insurance sector shot up by around 40 per cent on an average from the beginning of July.

Share prices of general insurance, bank and non-bank financial institution sectors gained 7.09 per cent, 4.43 per cent and 0.78 per cent respectively.

Most of the companies in the ‘Z’ category, which groups low-profile scrips, also surged on the day.

Of the 354 scrips traded on the DSE on Thursday, 204 advanced, 130 declined, and 21 remained unchanged.

DSE blue-chip index DS30 also added 0.81 per cent, or 12.84 points, to close at 1,594.3 points on the day.

Shariah index DSES also added 0.01 per cent, or 0.13 points, to settle at 1,088.46 points.

BRAC Bank led the turnover chart with its shares worth Tk 52.16 crore changing hands on the day.

Bangladesh Export Import Company, Square Pharmaceuticals, Beximco Pharmaceuticals, British American Tobacco, Nahee Aluminium, Grameenphone, IFIC Bank, Baraka Power, Bangladesh Submarine Cables Company were the other turnover leaders on the day.

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