Stocks gain for 4th day as some large caps shine

Staff Correspondent | Published: 21:58, Nov 29,2020


Dhaka stocks gained marginally on Sunday, extending the gaining streak to the fourth session as a section of investors continued buying shares of a number of large capitalised companies.

Market operators said many other investors struggled to trade shares as share prices of around 87 companies remained stuck at their floor prices.

DSEX, the key index of the Dhaka Stock Exchange, added 0.26 per cent, or 12.72 points, to close at 4,881.82 points on Sunday.

The DSEX added 64 points in the last four sessions.

The key index went through a choppy session and settled in the positive trajectory as some investors continued buying shares, market operators said.

They said that the market remained almost static as share prices of around 87 companies were stuck at their floor prices and investors could not sell shares of the companies.

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.

Only few companies controlled the market trend. Share prices of Beximco Pharmaceuticals and BEXIMCO soared by more than 4 per cent each while Grameenphone increased by 0.72 per cent on Sunday that contributed most to the gain on the day.

DS30, a composition of 30 large capitalised companies, added 0.53 per cent, or 9.09 points, to close at 1,698.79 points on the day.

Trading value of some 115 companies was below Tk 10 lakh each.

The mutual fund sector took a breather on Sunday after continued surge in recent days, market operators said.

Insurance and mutual fund sectors continued dominating the market with the insurance sector logging 39 per cent and mutual fund 14 per cent of the day’s total turnover.

The average share prices of general insurance, telecommunication and bank sectors advanced on the day.

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

EBL Securities in its daily market commentary said, ‘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 effect of COVID-19 on the economy is still unpredictable.’

Of the 357 scrips traded on the DSE on Sunday, 145 declined, 110 advanced and 95 remained unchanged.

The turnover on the DSE inched up to Tk 766.21 crore compared with that of Tk 758.33 crore in the previous session.

Shariah index DSES also added 0.18 per cent, 2.06 points, to settle at 1,120.91 points.

Bangladesh Export Import Company led the turnover chart with its shares worth Tk 49.43 crore changing hands on the day.

Beximco Pharmaceuticals, Northern Islami Insurance, Nitol Insurance, United Power Generation Company, Reliance Insurance, Prime Insurance Company, Bangladesh Submarine Cables Company, Asia Pacific Insurance and Republic Insurance Company were the other turnover leaders on the day.

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