Stocks inch up as large cap cos shine

Staff Correspondent | Published: 22:52, Jun 17,2021

 
 

Dhaka stocks inched up on Thursday despite a fall in share prices of two-thirds of companies as investors went for buying shares from those of large capitalised companies while many others booked profits.

DSEX, the key index of the Dhaka Stock Exchange, added 0.01 per cent, or 1.01 points, to close at 6,052.75 points on Thursday.

The DSEX gained 39 points in the last three sessions.

The core index gained 41 points within an hour of Thursday’s session but slowed down soon after as many investors went for profit booking, market operators said.

Despite a fall in share prices of two-thirds of companies, the market managed to gain due to the surge in share prices of a number of large capitalised companies, including BEXIMCO, Beximco Pharmaceuticals, Summit Power, British American Tobacco Company that together added 18 points to the DSEX, market operators said.

Of the 366 scrips traded on the DSE on Thursday, 107 advanced, 237 declined and 28 remained unchanged.

After hitting a 39-month high on June 10, the key index struggled to rise further as many investors preferred profit booking and observed the next move of the market, market operators said.

Investors booked profits from insurance companies after a significant surge in the companies’ share prices in recent weeks.

EBL Securities in its daily market commentary said, ‘The core index restrained settling above the 6,000-mark, as some shaky investors opted to book profits amidst volatile trading during the session. Moreover, predominant selling pressure was observed in the hyped-up insurance stocks, as the recent rally took the sectoral scrips to an exorbitant price level.’

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 fifth day on Thursday.

Average share prices of energy, miscellaneous and pharmaceutical sectors advanced by 1.5 per cent, 1.4 per cent and 0.2 per cent respectively.

Share prices of general insurance, non-bank financial institution, engineering and textile sectors dropped by 2.9 per cent, 1.1 per cent, 1 per cent and 0.6 per cent respectively.

Turnover on the DSE dropped to Tk 1,847.16 crore on Thursday from Tk 2,109.68 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 10th day on Thursday.

DS30, a composition of 30 large capitalised companies, also added 0.63 per cent, or 13.79 points, to close at 2,197.06 points on Thursday.

Shariah index DSES increased by 0.17 per cent, or 2.26 points, to settle at 1,290.93 points.

BEXIMCO led the turnover chart with shares worth Tk 213 crore changing hands on the day.

National Feed Mills, Pioneer Insurance, Orion Pharmaceuticals, National Polymer, Fortune Shoes, Summit Power, Confidence Cement, Power Grid and BBS Cables, were the other turnover leaders on the day.

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