Dhaka stocks gain for 2nd day

Staff Correspondent | Published: 22:50, Jun 16,2021

 
 

Dhaka stocks increased for the second day on Wednesday as investors continued buying shares, especially those of insurance companies with an expectation of better returns.

DSEX, the key index of the Dhaka Stock Exchange, added 0.14 per cent, or 29.42 points, to close at 6,051.73 points on Wednesday after gaining 8.7 points in the previous session.

The market remained positive in the whole session as investors continued buying shares amid optimism, market operators said.

Investors remained active with shares of insurance companies. Share prices of the life insurance and general insurance sector soared by 4 per cent and 1.1 per cent, and logged together 29 per cent of the day’s total turnover.

Investors kept buying shares of insurance companies heavily despite warnings voiced by market experts about possible manipulation with the shares, market operators said.

EBL Securities in its daily market commentary said, ‘The rise in the core index was driven by the increase in the majority of the sectors as investors are making fresh investments in stocks to avail tax benefits in the outgoing fiscal year. Besides, the media reports on a possible continuation of the special facility to legalise undisclosed money in the finance bill 2021 may positively impact the market.’

Besides, average share prices of cement, engineering and pharmaceutical sectors advanced by 2.1 per cent, 1.8 per cent and 0.3 per cent respectively.

Among the large capitalised companies, a surge in share prices of BSRM Limited, BBS Cables, BSRM Steel and Square Pharmaceuticals contributed most to the rally.

Average share prices of non-bank financial institution, bank and textile sectors dropped by 0.6 per cent, 0.5 per cent and 0.2 per cent respectively.

Trading of the shares of Paper Processing & Packaging Limited, Monno Fabrics Limited, Bangladesh Monospool Paper Manufacturing Co Limited and Tamijuddin Textile Mills Limited began on the main board of the DSE on June 13 again as the companies came out of the over-the-counter market.

Share prices all the four companies hit the upper limit of the circuit breaker for the fourth day on Wednesday.

Turnover on the DSE advanced to Tk 2,109.68 crore on Wednesday from Tk 1,740.16 crore in the previous session.

The Bangladesh Securities and Exchange Commission on June 3 withdrew floor price restrictions on 30 more companies and set downward price change limit at the maximum 2 per cent.

Share prices of most of them declined for the ninth day on Wednesday.

Of the 366 scrips traded on the DSE on Wednesday, 182 advanced, 156 declined and 34 remained unchanged.

DS30, a composition of 30 large capitalised companies, also added 0.29 per cent, or 6.38 points, to close at 2,183.26 points on Wednesday.

Shariah index DSES increased by 0.35 per cent, or 4.59 points, to settle at 1,288.66 points.

BEXIMCO led the turnover chart with shares worth Tk 175 crore changing hands on the day.

Pioneer Insurance, BBS Cables, Orion Pharmaceuticals, Confidence Cement, BSRM Limited, Green Delta Insurance, Republic Insurance, Lub-rref Bangladesh and Sonar Bangla Insurance were the other turnover leaders on the day.

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