Stocks surge, turnover hits 1-yr high as spl fund sparks hope

Staff Correspondent | Published: 23:41, Feb 13,2020

 
 

Dhaka stocks soared on Thursday, extending the gaining streak to the third day as investors, encouraged by the formation of a special fund by the Bangladesh Bank for the ailing stock market, went for heavy buying.

DSEX, the key index of Dhaka Stock Exchange, soared by 1.86 per cent, or 83.78 points, to close at 4,564.61 points on the day.

The DSEX gained 180 points in the last three sessions following a 121-points decrease in the previous five sessions.

The key index began to gain from the very beginning of Thursday’s session and climbed with an increased force due to heavy buying in late trading amid the BB’s move for the capital market, market operators said.

The central bank on Monday issued a circular allowing each schedule bank to borrow up to Tk 200 crore from it with low interest rate to invest in the stock market.

EBL Securities in its daily market commentary said ‘Investors continued to show their enthusiasm after the declaration of the special fund for banks to invest in the capital market and subsequently large capitalised sectors namely fuel and power, bank and engineering observed the most buying pressure, which took the market to positive territory at the end.’

‘Stocks eligible for receiving investments from the banks and other intermediaries as per the special fund directives became lucrative as many investors are reconstructing their portfolios accordingly to book hefty gain,’ it said.

The turnover on the DSE advanced to Tk 730.57 crore on Thursday from Tk 657.19 crore in the previous trading session.

Thursday’s turnover on the bourse was the highest since February 18 last year when it was Tk 891.67 crore.

The average share prices of almost all the sectors advanced on the day.

The share prices of energy sector soared by 3.4 per cent, engineering 3.3 per cent, non-bank financial institution 2.5 per cent and bank 1.4 per cent on Thursday.

Out of 30 prominent companies in DS30, the share prices of 26 advanced and those of four declined on the day.

Out of the 356 scrips traded on Thursday, 259 advanced, 65 declined and 32 remained unchanged.

DSE blue-chip index DS30 advanced by 1.35 per cent, or 20.56 points, to close at 1,536.63 points.

Shariah index DSES added 1.46 per cent, or 15.12 points, to end at 1,045.81 points.

Khulna Power Company led the turnover chart with its shares worth Tk 28.60 crore changing hands on the day.

LafargeHolcim Bangladesh, Indo-Bangla Pharmaceuticals, Shepherd Industries, SS Steel, Orion Infusions, Doreen Power, ADN Telecom, Summit Power and Bangladesh Export Import Company were the other turnover leaders.

Far Chemical Industries gained the most on the day with a 10-per cent increase in its share prices while Samata Leather Complex performed the worst, losing 5.72 per cent.

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