Stocks drop for 2nd day

Staff Correspondent | Published: 22:16, Sep 20,2020


Dhaka stocks dropped for the second day on Sunday as investors continued taking profits after the recent rally while many others kept investing in the market amid optimism.

DSEX, the key index of the Dhaka Stock Exchange, shed 0.3 per cent, or 15.78 points, to close at 5,088.81 points on the day after losing 12.15 points in the previous session.

After a slight hike at the beginning on Sunday, the key index went downwards to finish the session in the negative zone as investors moved for profit booking after recent gains, market operators said.

They said that the continued surge on the market lifted the share prices of almost all companies that provoked some investors to realise profits.

Share prices of some large capitalised companies including Grameenphone, Square Pharmaceuticals, BRAC Bank and British American Tobacco plunged on the day.

The DSEX gained 1,140 points in the last three-month surge, recovering around Tk 75,200 crore in market capitalisation.

A group of investors kept buying shares with an expectation that the market would gain further, market operators said.

They said that banks’ lower interest rate, market stabilisation measures by securities regulator and relentless gain in share prices drew many new investors to the market.

Moreover, investors’ worry over the coronavirus outbreak fallout waned to some extent due to the faster economic recovery from stagnant situation than it was predicted, they said.

Some investors have been buying shares of those companies whose directors did not comply with mandatory 2 per cent shareholding individually and 30 per cent shareholding jointly after the Bangladesh Securities and Exchange Commission warned the errant directors of vacating their directorship.

Most of the errant directors were from the insurance companies.

Share prices of United Airways, Tallu Spinning Mills, Family Textile shot up by maximum allowed percentage on the day.

Share prices of insurance and non-bank financial companies soared on the day while bank and pharmaceutical companies faced correction.

Of the top 20 gaining companies on Sunday, 15 were from the insurance sector.

Meghna Petroleum has signed an agreement with JMI Industrial Gas Limited to sell LPG by establishing LPG (Auto gas) Refueling Station, according to DSE web site.

The company will receive royalty of Tk 0.50 against per litre sales of LPG, it said. Of the 357 scrips traded on the DSE on Sunday, 194 declined, 124 advanced and 38 remained unchanged.

Turnover on the DSE advanced to Tk 1,103.88 crore on Sunday compared with that of Tk 1,013.8 crore in the previous trading session.

DSE blue-chip index DS30 dropped by 0.49 per cent, or 8.73 points, to close at 1,752.86 points on the day.

Shariah index DSES shed 0.83 per cent, or 9.67 points, to settle at 1,153.38 points.

Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 54.13 crore changing hands on the day.

Bangladesh Export Import Company, SK Trims Industries, Nitol Insurance, Bangladesh Submarine Cables Company, Delta Brac Housing Finance, United Power Generation Company, BRAC Bank, Republic Insurance and Rupali Life Insurance were the other turnover leaders on the day.

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