Stocks gain for 3rd day

Staff Correspondent | Published: 22:14, Apr 07,2021

 
 

Dhaka stocks gained for the third day on Wednesday as investors continued buying shares due to the easing of their worries about COVID restrictions.

The DSEX added 1.05 per cent, or 55.95 points, to close at 5,337.33 points on Wednesday.

The DSEX gained 248.33 points in the last three sessions.

Before the three-day gain, the DSEX had lost 284 points in three sessions.

Market operators said that the investors’ worries about the COVID-19 restrictions eased as the restrictions were loosely followed in Dhaka and elsewhere in the country for the third consecutive day on Wednesday.

Services of buses in all major cities resumed on Wednesday.

The government has been enforcing a seven-day restriction period since Monday to check a fresh surge in COVID-19 infection cases and deaths.

The country reported 7,626 new coronavirus cases, which is the highest of all time. It also reported 63 more deaths from the pathogen.

Share prices of most of the companies significantly fell in recent days that lured a section of investors to inject funds in the scrips, market operators said.

They said that the market struggled for the last few weeks due mainly to a sudden surge in coronavirus cases in the country.

Moreover, the Bangladesh Securities and Exchange Commission on Sunday increased the margin loan ratio to 1:0.8 from 1:0.5 that attracted many investors to the market, they said.

The new ratio will be applicable if the DSEX remains below 7,000 points. If the index crosses 7,000 points, the previous ratio, 1:0.5, would come into force.

Due to the rise in margin loan facility, investors continued buying shares.

Bangladesh Merchant Bankers Association president Sayedur Rahman told New Age that the investors’ concern over coronavirus-centric restrictions reduced.

Investors had feared that the market might remain closed during the restriction period, but the regulator keeps the market open, he said.

Besides, the increase in margin loan ratio also attracted many investors, he said.

Average share prices of the general insurance sector soared by 2.8 per cent on the day.

EBL Securities in its daily market commentary said, ‘Dhaka bourse rallied on buying-rush, after easing of lockdown worries prompted investors to take advantage of low priced stocks,’

‘Besides, the insurance stocks heated up once again and the sector dominated the hailing turnover board based on investors’ aggravated participation,’ it said.

Share prices of Index Agro industries, which made its debut on Wednesday, shot up by the maximum allowed limit of 50 per cent to close at Tk 75 each.

Apart from general insurance, share prices of non-bank financial institution, miscellaneous, bank and pharmaceutical sectors advanced by 3.9 per cent, 2.8 per cent, 1.5 per cent and 0.8 per cent respectively.

Of the 346 scrips traded on the DSE on Wednesday, 199 advanced, 43 declined and 102 remained unchanged.

The turnover on the DSE increased to Tk 582.52 crore on Wednesday from Tk 508.45 crore in the previous session.

DS30, a composition of 30 large capitalised companies, advanced by 1.15 per cent, or 22.92 points, to close at 2,011.19 points on Wednesday.

Shariah index DSES also added 0.79 per cent, or 9.55 points, to settle at 1,214.16 points.

BEXIMCO led the turnover chart with its shares worth Tk 50.82 crore changing hands on the day.

Robi, Asia Pacific Insurance, LankaBangla Finance, Beximco Pharmaceuticals, Paramount Insurance, Provati Insurance, LafargeHolcim Bangladesh, British American Tobacco Company were the other turnover leaders on the day.

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