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Stocks advance further as rally attracts more investors

Staff Correspondent | Published: 22:32, Sep 16,2020

 
 

A file photo shows investors monitoring the stock price movement on computer screens at a brokerage house in capital Dhaka. Dhaka stocks gained marginally for the second day on Wednesday as investors, encouraged by the recent rally and upbeat economic data, kept buying shares.— New Age photo

Dhaka stocks gained marginally for the second day on Wednesday as investors, encouraged by the recent rally and upbeat economic data, kept buying shares.

DSEX, the key index of the Dhaka Stock Exchange, increased by 0.31 per cent, or 16.2 points, to close at 5,116.81 points on the day after gaining 8.40 points in the previous session.

Wednesday’s index was the highest after August 28, 2019 when it was at 5,139.99 points. The DSEX gained 256 points in the last 11 sessions with just two negative sessions.

In line with the previous session, the key index started gaining from the very beginning of Wednesday’s session and remained in the positive territory for the rest of the session as investors continued buying shares, market operators said.

They said that the reopening of economic activities, record remittance inflow and export earnings and an increased fund flow to the financial market had been the key factors of a months-long surge.

EBL Securities in its daily market commentary said, ‘Though, turnover on the trading floor is on the rise, the risk averse investors preferred to book fast-gain in the early session following the recent price rise while optimistic investors continued to pour fresh fund on the bullish market.’

Market operators said that the investors’ confidence strengthened amid some disciplinary and development measures by the Bangladesh Securities and Exchange Commission.

The market remained vibrant in the last two months with increased participation of investors. The index gained 1,035 points during the period that pulled more investors to the market.

Moreover, directors of a number of companies which remained short of mandatory 2 per cent shareholding and 30 per cent joint shareholding moved to buy shares to comply with the BSEC rules.

High net-worth investors brought shares of the non-compliant companies to get directorship in the companies as the BSEC warned of annulling the directorship for non-compliance, market operators said.

Share prices of most of the ‘Z’ category companies advanced on Wednesday as the BSEC moved to reshape the boards of the companies.

Share prices of Al-Haj Textile, Keya Cosmetics, C&A Textile and Tung Hai soared on the day.

The average share prices of textile, bank and non-bank financial institution sectors advanced most on the day.

Of the 357 scrips traded on the DSE on Wednesday, 185 advanced, 120 declined, and 51 remained unchanged.

Turnover on the DSE advanced to Tk 1,147.25 crore on Wednesday compared with that of Tk 995.59 crore in the previous trading session.

DSE blue-chip index DS30 added 0.15 per cent, or 2.77 points, to close at 1,764.11 points on the day.

Shariah index DSES, however, shed 0.14 per cent, or 1.72 points, to settle at 1,764.11 points.

Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 30.36 crore changing hands on the day.

United Power Generation Company, Bangladesh Export Import Company, BRAC Bank, City Bank, Nitol Insurance, Confidence Cement, BD Finance, BBS Cables and British American Tobacco were the other turnover leaders on the day.   

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