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Stocks advance, Robi’s IPO subscription begins

Staff Correspondent | Published: 22:39, Nov 17,2020

 
 

Dhaka stocks advanced on Tuesday as a section of investors went for buying shares of large capitalised companies after offloading shares of mutual funds and insurance companies.

The subscription of Robi’s Tk 523.79-crore initial public offering began on Tuesday.

DSEX, the key index of the Dhaka Stock Exchange, advanced by 0.69 per cent, or 33.67 points, to close at 4,905.09 points on Tuesday after gaining 3 points in the previous session.

The market started gaining from the very beginning of Tuesday’s session and continued to climb until the end of the session as investors went for buying shares, especially those of large capitalised companies, market operators said.

They said that investors turned their focus to banks and non-bank financial institutions as share prices of most of them remained undervalued.

Out of the 30 banks traded on Tuesday, 28 advanced, one declined and one remained unchanged while out of the 22 NBFIs traded, 15 advanced, three declined and four remained unchanged.

Among the large capitalised companies, share prices of Beximco Pharmaceuticals, BEXIMCO, BRAC Bank and Grameenphone advanced on the day.

EBL Securities in its daily market commentary said, ‘Sectoral giants such as bank, NBFI, and fuel and power pushed the market higher as investors are taking fresh positions on those selective issues.

‘Moreover, trading activities might remain sluggish and volatility might be frequent as investors are releasing their funds to participate in IPOs,’ it said.

The DSEX has been hovering at 4,900 points for the last couple of months as investors are confused about the recent market trend, market operators said.

Only two sectors, mutual fund and insurance, have been dominating the market in recent months that has made the market vulnerable as a large number of investors, ditching other companies’ shares, moved to the sectors after observing surges in share prices of the companies of the sectors, they said.

Both the sector faced corrections for the second day on Tuesday.

The mutual fund sector led the turnover chart, logging 23.76 per cent of the day’s total turnover.

The average share prices of NBFI, bank and energy sectors advanced by 2.4 per cent, 2.1 per cent and 0.2 per cent respectively.

The turnover on the DSE inched up to Tk 790.91 crore on Tuesday compared with that of Tk 790.15 crore in the previous trading session.

DSE blue-chip index DS30 added 0.42 per cent, or 7.22 points, to close at 1,704.03 points on the day.

Shariah index DSES increased by 0.34 per cent, or 3.98 points, to settle at 1,704.03 points.

Of the 357 scrips traded on the DSE on Tuesday, 127 declined, 149 advanced and 71 remained unchanged.

Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 63.9 crore changing hands on the day.

BRAC Bank, Bangladesh Export Import Company Limited, Asia Insurance, Grameen Scheme Two, Square Pharmaceuticals, Exim Bank 1st Mutual Fund, Islami Insurance Bangladesh, Associated Oxygen and Al-Arafah Islami Bank were the other turnover leaders on the day.

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