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Stocks gain for 3rd day

Staff Correspondent | Published: 22:26, Nov 26,2020

 
 

Dhaka stocks gained for the third day on Thursday as a section of investors continued buying shares while many others remained concerned over the current sluggishness on the market.

DSEX, the key index of the Dhaka Stock Exchange, gained 0.14 per cent, or 7.21 points, to close at 4,869.09 points on Thursday.

The DSEX added 51.38 points in the last three days.

Before the three-day gain, the DSEX lost 85.86 points in the previous four sessions.

The core index went through a choppy session with a couple of ups and downs and ended with a slight gain as some investors continued buying shares amid optimism, market operators said.

Share prices of Bangladesh Export Import Company hit the upper limit of the circuit breaker that saved the market from a fall, they said.

Out of the 29 companies traded under blue-chip index DS30, only nine companies advanced but by below 0.5 per cent on Thursday.

But, the DS30, a composition of 30 large capitalised companies, added 0.46 per cent, or 7.74 points, to close at 1,689.7 points on the day only because of a surge in BEXIMCO shares.

Shares of only a few companies were traded that controlled the movement of the index.

Trading of 21 companies was suspended on Thursday due to their record date related to corporate declarations.

Trading value of some 95 companies was below Tk 10 lakh each.

Share prices of around 85 companies were stuck at their floor prices and investors could not sell shares of the companies that also supported the market to remain afloat, market operators said.

The Bangladesh Securities and Exchange Commission on March 19 introduced the floor price mechanism to check free fall on the market amid the COVID-19 outbreak in the country.

The continued domination of the mutual funds and insurance companies became a hurdle for better companies as more investors rushed to the sectors selling off other companies’ shares, market operators said.

EBL Securities in its daily market commentary said, ‘Most of the opportunist investors were active on insurance and mutual fund scrips amid positive expectation as the sectoral scrips offered low-priced shares created by a period of correction.’

‘Except for a few selective sectors, most of the investors were watchful on the other issues as they have taken a conservative approach in fear of an obscure future since the COVID-19 infections in the past few days observed a rising trend,’ it said.

The mutual fund and general insurance sectors soared by 4.01 per cent and 1.23 per cent respectively.

The general insurance sector logged 38 per cent and the mutual fund sector 11 per cent of the day’s total turnover.

The average share prices of non-bank financial institution, telecommunication, energy and bank sectors dropped by 0.87 per cent, 0.46 per cent, 0.42 per cent and 0.05 per cent respectively.

The market has recently been grappling with the dominance of only two sectors, overflow of initial public offerings, poor corporate declaration, adjustment of bonus shares and concerns over looming second wave of coronavirus outbreak.

Of the 357 scrips traded on the DSE on Thursday, 119 declined, 120 advanced and 96 remained unchanged.

The turnover on the DSE increased to Tk 758.33 crore compared with that of Tk 602.74 crore in the previous session.

Shariah index DSES also added 0.14 per cent, 1.6 points, to settle at 1,118.85 points.

Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 57.89 crore changing hands on the day.

Bangladesh Export Import Company, Nitol Insurance, Green Delta Insurance, Mercantile Insurance Company, Sonar Bangla Insurance, Islami Insurance Bangladesh, Pragati Insurance, Associated Insurance and Northern Islami Insurance were the other turnover leaders on the day.

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