Stocks gain for 7 weeks as some large cap cos soar

Staff Correspondent | Published: 22:34, Jan 16,2021

 
 

Dhaka stocks in the past week soared for the seventh week as investors went for a buying binge, especially for some large capitalised companies’ shares following the revival of vaccine hopes and the Bangladesh Securities and Exchange Commission setting the maximum ceiling on the margin loan interest rate.

DSEX, the key index of the Dhaka Stock Exchange, gained 5.11 per cent, or 287.54 points, over the past week to close at 5,909.31 points on January 14, the last trading session of the week.

The DSEX gained 1,045 points in the last seven weeks.

The core index advanced in the four sessions of the five-day week as investors continued injecting funds into the market, market operators said.

Despite a fall in share prices of most of the companies, the DSE skyrocketed in the week due to a surge in share prices of some large capitalised companies.

Out of the 364 issues traded in the past week, 168 declined, 146 advanced and 50 remained unchanged.

Share prices of BEXIMCO and Beximco Pharmaceuticals shot up by 33.2 per cent and 11.95 per cent over the week.

The Directorate General of Health Services on January 11 announced that the country’s vaccination campaign against COVID-19 would begin in the first week of February.

The media also reported that 50 lakh units of Oxford-AstraZeneca COVID-19 vaccine from the Serum Institute of India would arrive in Bangladesh through local vendor Beximco Pharmaceuticals in January 21-25.

Share prices of LafargeHolcim Bangladesh, Square Pharmaceuticals, Grameenphone and LankaBangla Finance also soared over the week.

DSE’s blue-chip index DS30 shot up by 9.21 per cent, or 188.71 points, to finish at 2,236.78 points.

So, the market capitalisation on the DSE hit an all-time high on January 14 as it reached Tk 5,01,709.6 crore for the first time.

EBL Securities in its weekly market commentary said, ‘The BSEC decision to probe stocks with unusual price movement, turnover and EPS changes triggered a correction on January 13.’

However, the BSEC’s decision to suspend the probe and setting a ceiling on the margin loan rate resulted in a rebound of the index on January 14, it said.

The BSEC on January 13 set the maximum limit on margin loan rate at 12 per cent that drew attention of many investors, market operators said.

They said that a continued surge in the share prices encouraged investors to make investments in the stock market for making better gains.

The market has been gaining in recent weeks due mainly to a decline in banks’ interest rate that has pushed a section of people to invest their funds in the stock market for making better returns, market operators said.

The investors’ confidence has been growing in recent weeks amid some reforms and disciplinary actions taken by the BSEC, they said.

Robi Axiata, which made its debut on December 24, continued surging by the maximum limit allowed in the circuit breaker. The company closed at 70.1 a share on January 14.

Share prices of all the 13 multinational companies advanced in the past week.

Average share prices of telecommunication, non-bank financial institution, pharmaceuticals and bank sectors advanced by 17 per cent, 5.3 per cent, 4.8 per cent and 0.9 per cent respectively.

The daily average turnover on the DSE dipped to Tk 1,868.65 crore in the past week compared with that of Tk 1,990.23 crore in the previous week.

Shariah index DSES added 4.55 per cent, or 57.57 points, over the past week to close at 1,265.94 points.

Bangladesh Export Import Company led the turnover chart with its shares worth Tk 812 crore traded in the past week.

Robi, Beximco Pharmaceuticals, IFIC Bank, LankaBangla Finance, Summit Power, Power Grid Company of Bangladesh, Square Pharmaceuticals and City Bank were the other turnover leaders.

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