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The Financial Express
Swasti Lankabangla Swasti Lankabangla

Stocks keep gaining riding on regulatory moves

DSE daily turnover scales Tk 12b mark amid growing optimism


| Updated: August 16, 2020 09:59:36


Stocks keep gaining riding on regulatory moves

Daily trade turnover on Dhaka Stock Exchange (DSE) scaled Tk 12-billion mark on Thursday once again as investors put fresh stakes on stocks amid growing confidence in the market.

Turnover, a crucial indicator of the market, stood at Tk 12.08 billion on the country’s premier bourse, climbing further by 7.86 per cent over previous day’s mark of Tk 11.20 billion.

It happens to be the biggest single-day transaction in the last n weeks since June 28, when turnover totalled Tk 25.43 billion riding on huge block trade of GSK Bangladesh.

Attuned to the rising turnover value, DSEX, the prime index of the DSE, continued to hold its soaring momentum, crossing the 4,700-mark after nearly six months, adding 69.94 points more to settle at 4,703.

Market insiders said investor enthusiasm sustained as local and foreign investors remained active on the market amid optimism, taking the prime index above 4,700-mark after six months.

Market operators said the securities regulator hard stance on ensuring mandatory shareholding, exemplary punishment handed out to wrongdoers, expansionary monetary policy and some positive macro indicators encouraged investors to take position on large-cap stocks.

Investors exerted buy pressure on most of the sectors following revived optimism as regulator’s attempts to undertake strict measures for strengthening the market and some positive macro indicators gave investors a major boost, said a leading broker.

The stock market regulator further directed the listed companies and their board of directors to comply with the directive regarding holding minimum 30 per cent shares jointly by the directors, other than independent ones, within 60 working days from July 29, 2020.

As per the BSEC information, 42 listed companies have not yet complied with the directive of holding minimum 30 per cent shares by their directors jointly.

The securities regulator’s latest hard stance on ensuring mandatory 2.0 per cent shareholding by each director and jointly 30 per cent shareholding had a positive impact on the stock prices, said a leading broker.

Two other indices also edged higher. The DS30 index, comprising blue chips, advanced 12.84 points to finish at 1,594 and the DSE Shariah Index saw a fractional gain of 0.13 point to close at 1,088.

Gainers outnumbered the losers, as out of 355 issues traded, 204 closed higher and 130 ended lower while 21 issues remained unchanged on the DSE floor.

A total number of 218,897 trades were executed in the day’s trading session with a trading volume of 466.89 million shares and mutual fund units.

The market-cap on the premier bourse also rose to Tk 3,550 billion on Thursday, from Tk 3,522 billion in the previous session.

Brac Bank topped the turnover chart with shares worth Tk 522 million changing hands, closely followed by Beximco, Square Pharma, Beximco Pharma and BTABC.

Alif Industries was the day’s best performer, posting a gain of 10 per cent while Meghna Condensed Milk was the worst loser, losing 9.89 per cent.

The Chittagong Stock Exchange ended higher with its All Shares Price Index (CASPI)—soaring 196 points to close at 13,361 and the Selective Categories Index - CSCX –rising 111 points to finish at 8,072.

Of the issues traded, 166 gained, 99 declined and 27 remained unchanged on the CSE.

The port city bourse traded 19.75 million shares and mutual fund units with turnover value of Tk 351 million.

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