Dhaka stocks inch up after four-day fall

Walton share prices soar by 50 per cent on debut

Staff Correspondent | Published: 22:53, Sep 23,2020


Dhaka stocks inched up on Wednesday, snapping a four-day losing streak as a section of investors moved to buy shares amid Walton Hi-Tech Industries’ debut on the market while many others remained cautious due to fears over possible second wave of the COVID-19 outbreak.

DSEX, the key index of the Dhaka Stock Exchange, added 0.04 per cent, or 2.02 points, to close at 4,972.73 points on the day after losing 146.78 points in the previous four sessions.

The core index jumped by 56 points within 15 minutes of the day but did not sustain the vibe for long as it ended the session with a brief gain as cautious investors continued selling shares amid fears over the possible second wave of the COVID-19 outbreak, market operators said.

They said that the DSEX had gained around 1,145 points within three months that provoked investors to gain profits.

The key index lost heavily in the previous four sessions after the Bangladesh Securities and Exchange Commission moved to punish market manipulators.

The regulator suspended trading of the shares of Zeal Bangla Sugar Mills and froze 10 BO accounts of investors of GQ Ball Pen Industries after an abnormal hike in the companies’ share prices.

Market operators said that investors were enthusiastic about the debut of Walton Hi-Tech Industries on the day.

Share prices of Walton shot up by maximum allowed limit, 50 per cent, on the debut day on Wednesday due mainly to a scarcity of number of floating shares, they said.

As per the bidding price, Walton issued only 27.58 lakh shares or 0.92 per cent of its pre-IPO paid-up capital to raise Tk 100 crore.

Only 348 shares were traded on the day.

Share prices of the company closed at Tk 378 on the day after opening at Tk 252 a share.

Market operators said that a section of investors also became worried about the looming second wave of coronavirus infection.

The media reported on Tuesday that the government ordered the authorities concerned to take precautions against the second wave of COVID-19 infections feared to begin in October-November.

However, some investors moved to buy shares with an expectation that the market would rebound soon.

The market witnessed a sharp rise in the last three months due to a host of reasons including huge fund flow to the financial market, speedy economic recovery and market stabilisation measures by securities regulator.

Of the 357 scrips traded on the DSE on Wednesday, 137 declined, 174 advanced and 45 remained unchanged.

Turnover on the DSE increased to Tk 881.81 crore on Wednesday compared with that of Tk 729.92 crore in the previous trading session.

DSE blue-chip index DS30, however, dropped by 0.34 per cent, or 5.85 points, to close at 1,708.48 points on the day.

Shariah index DSES also shed 0.08 per cent, or 0.9 points, to settle at 1,125.82 points.

Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 28.05 crore changing hands on the day.

Delta Brac Housing Finance, Bangladesh Export Import Company, Rupali Insurance Company, Purabi General Insurance, BRAC Bank, BD Finance, Nitol Insurance, Square Pharmaceuticals and Bangladesh Submarine Cables Company were the other turnover leaders.

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