Dhaka stocks advanced on Tuesday after a fall in the previous session as a section of investors went for bargain hunting targeting large capitalised companies including banks while others remained cautious amid an ongoing sluggishness on the market.
DSEX, the key index of the Dhaka Stock Exchange, advanced by 0.76 per cent, or 37.11 points, to close at 4,903.95 points on Tuesday after losing 14.97 points in the previous session.
The core index started gaining from the very beginning of Tuesday’s session and maintained the momentum until the end of the session as investors went for buying shares, market operators said.
The index has been hovering at 4,900 points for the last three months due to various issues including overflow of initial public offerings, domination of only a couple of sectors and concerns over looming second wave of coronavirus outbreak.
Market operators said that a section of investors went for buying shares, especially those of large capitalised companies including banks as share prices of many of the companies declined significantly in recent bearish trend.
Around 90 companies remained stuck in their floor prices that also reduced the participation of investors on the trading floor.
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 floor price system prevents the price of a company’s shares from falling below a certain level.
The turnover on the DSE dropped to Tk 663.84 crore compared with that of Tk 804.21 crore in the previous session.
Beximco Pharmaceuticals, BEXIMCO, Grameenphone and Square Pharmaceuticals gained on Tuesday that contributed most to the gain on Tuesday.
DS30, a composition of 30 large capitalised companies, gained 0.48 per cent, or 8.1 points, to close at 1,695.5 points on the day.
Insurance and mutual funds continued dominating the market registering 37 per cent and 12 per cent of the day’s total turnover respectively.
However, both the sectors dropped on the day.
Of the 357 scrips traded on the DSE on Tuesday, 92 declined, 149 advanced and 109 remained unchanged.
Shariah index DSES added 0.57 per cent, 6.38 points, to settle at 1,120.35 points.
Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 31.93 crore changing hands on the day.
Pragati Insurance, IFIC Bank, Bangladesh Export Import Company, Aamra Networks, Bangladesh Submarine Cables Company, National Feed Mills, Quashem Industries, Northern Islami Insurance and Nitol Insurance were the other turnover leaders on the day.
Trading of the shares of Dominage Steel Building Systems Limited will begin on the DSE today.
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