The prime index of the Dhaka Stock Exchange (DSE) crossed the 7,200-mark on Thursday riding large-cap stocks despite the market opening on a selling spree.
The market fell sharply at opening with the key index losing about 25 points within the first 30 minutes of trading. However, the price surge of some large-cap stocks helped the index to close higher.
DSEX, the benchmark index of the DSE, went up by 62.42 points or 0.86 per cent to settle at more than 7,258–the highest since its inception in 2013. DSEX added more than 435 points in the past eight consecutive sessions.
Brokers said the investors were panicked at the opening after the securities regulator sought to know the reason behind the unusual price hike of the low paid-up and weak companies and margin loan status to which companies have a price to earnings ratio over 40.
However, price hikes of some large-cap stocks like Walton, Square Pharma, Olympic Industries, Beximco Pharma and Grameenphone helped the market remain bullish, he said.
The Bangladesh Securities and Exchange Commission (BSEC) asked the Dhaka bourse to submit a report within 15 days about the reasons behind the skyrocketing prices of low-performing companies and junk stocks.
The DSE has also been asked to find whether margin loans were disbursed against the securities having a P/E ratio over 40.
Two other indices--the DSE 30 Index and the DSE Shariah Index (DSES) -- followed the suit to close at their historical highs of 2,647 and 1,592, after surging 33.60 points and 20.40 points respectively.
Turnover, another important indicator of the market, amounted to Tk 26.96 billion on the DSE, which was 5.52 per cent higher than the previous day’s tally of Tk 25.55 billion.
Losers and gainers were the same on the DSE as 177 issues advanced, 177 declined with 22 remaining unchanged on the DSE trading floor out of 376 issues traded on the DSE.
Square Pharmaceuticals continued to top the turnover list for the second straight day with shares worth Tk 812 million changing hands, closely followed by Beximco Pharma, Beximcio, BATBC and Meghna Life Insurance.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index – CASPI –gaining 152 points to settle at a record high at 21,131 and the Selective Categories Index – CSCX rising 93 points to close at 12,673.
Of the issues traded, 161 declined, 141 advanced and 30 remained unchanged on the CSE trading floor.
The port city’s bourse traded 31.41 million shares and mutual fund units with a turnover value of Tk 967 million.