Stocks gain for 2nd day

Staff Correspondent | Published: 23:29, Dec 02,2020

 
 

Dhaka stocks advanced for the second day on Wednesday as investors continued buying shares, especially those of large capitalised companies.

DSEX, the key index of the Dhaka Stock Exchange, advanced by 0.63 per cent, or 30.90 points, to close at 4,934.86 points on the day after gaining 37.11 points in the previous session.

In line with the previous session, the key index started gaining from the beginning of Wednesday’s session and maintained the momentum until the end of the session as investors continued buying shares, market operators said.

Among the major scrips, share prices of British American Tobacco, Bangladesh Export Import Company, LafargeHolcim Bangladesh, Square Pharmaceuticals and United Power Generation Company advanced on the day.

EBL Securities in its daily market commentary said that the Dhaka stock indices surged because of the investors’ participation amidst optimism over the news on progress in COVID-19 vaccines.

‘Investors were active on a handful of potential stocks with the positive expectation, which shifted the market pulse to optimist mode. Meanwhile, BSEC’s stance on mandatory director-holding and bond trading on the bourse to help build a vibrant capital market boosted the investors’ confidence which translated into Wednesday’s positive market reaction,’ it said.

The average share prices of cement, engineering, textile and energy sectors increased by 6 per cent, 4.8 per cent, 2.1 per cent and 1.3 per cent respectively.

Share prices of Dominage Steel Building Systems, which made its debut on Wednesday, shot up by the maximum allowed limit on the debut day to settle at Tk 15 a share.

The market gain was driven by a few companies as around 85 companies remained stuck at the floor prices due to continuous sluggishness on the market and price dilution because of adjustment of bonus dividends.

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 advanced to Tk 841.07 crore compared with that of Tk 663.84 crore in the previous session.

DS30, a composition of 30 large capitalised companies, gained 0.55 per cent, or 9.47 points, to close at 1,704.98 points on the day.

Of the 357 scrips traded on the DSE on Wednesday, 106 declined, 153 advanced and 96 remained unchanged.

Shariah index DSES added 0.55 per cent, 6.26 points, to settle at 1,126.62 points.

Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 44.84 crore changing hands on the day.

National Feed Mills, Beximco Pharmaceuticals, Bangladesh Submarine Cables Company, Nitol Insurance, Quashem Industries, Pragati Insurance, Unilever Consumer Care, LafargeHolcim Bangladesh and Associated Oxygen were the other turnover leaders on the day.

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