Stocks snap six-week losing streak

Staff Correspondent | Published: 23:12, Mar 06,2021

 
 

Dhaka stocks in the past week snapped a six-week losing streak as a section of investors went for bargain hunting while many others remained cautious.

DSEX, the key index of the Dhaka Stock Exchange, gained 1.84 per cent, or 99.39 points, over the past week to close at 5,515.78 points on March 4, the last trading session of the week after losing 492.6 points in the previous six weeks.

The key index gained three sessions in the five-day week as a section of investors went for bargain hunting, market operators said.

They said that share prices of most of the companies dropped in the recent rout that provoked investors to buy shares at lucrative prices.

The daily average turnover on the DSE also advanced to Tk 719.19 crore in the past week compared with that of Tk 467.05 crore in the previous week.

Share prices of C&A Textiles, Emerald Oil and Familytex Limited soared in the week after the Bangladesh Securities and Exchange Commission restructured the boards of the fundamentally weak companies to improve their business.

EBL Securities in its weekly market commentary said, ‘Upward movement in certain sector specific large cap stocks have helped the index stay in the positive terrain.’

Share prices of more than 80 companies hit their floor prices over the week due to volatility on the market.

The BSEC on March 19, 2020 introduced the floor price system to bar companies’ share prices from falling below a certain level amid the COVID-19 outbreak.

The market had dropped in the previous six weeks due to a host of reasons, including the setting of ceiling on margin loan rate, approval of a number of companies’ initial public offerings in a short period of time, dependence on a few companies and repeated changes in regulatory policies.

Share prices of eGeneration Limited, which made its debut on the DSE on February 23, continued surging to close at Tk 39.4 a share on March 4.

Average share prices of pharmaceutical, bank, textile and energy sectors advanced by 2.1 per cent, 1.8 per cent, 1 per cent and 0.7 per cent respectively.

Share prices of engineering and miscellaneous sectors dropped by 3 per cent and 0.9 per cent respectively.

Out of the 365 issues traded in the past week, 199 advanced, 100 declined, 121 advanced and 68 remained unchanged.

DSE’s blue-chip index DS30 soared by 2.27 per cent, or 46.89 points, to finish at 2,112.68 points.

Shariah index DSES also increased by 1.85 per cent, or 22.72 points, over the past week to close at 1,248.60 points.

BEXIMCO led the turnover chart in the past week with its shares worth Tk 563.36 crore changing hands.

Robi Axiata, British American Tobacco Bangladesh, Beximco Pharmaceuticals, LankaBangla Finance, Summit Power, GBB Power, LafargeHolcim Bangladesh, Orion Pharmaceuticals and Square Pharmaceuticals were the other turnover leaders.

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