Stocks ended higher on Monday after high volatility despite the news of uncertainty regarding coronavirus vaccine import amid India’s ban on vaccine export for a few months.
After a big jump in the first session the year, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 33.36 points or 0.59 per cent to settle at 5,652. It has been the highest since March 14, 2019, when DSEX was 5,655.
The total market-cap of DSE surged to Tk 4,687 billion, hitting a fresh all-time high on Monday.
The DSE trade volume also recorded an all-time high as trading volume stood at more than 741.76 million shares and mutual fund units, breaking the previous high of 703.42 million recorded on January 23, 2017.
Turnover, a crucial indicator of the market, stood at Tk 21.93 billion on the country’s premier bourse, climbing further by 14 per cent over the previous day’s mark of Tk 19.25 billion.
It was also the highest turnover in six months since June 28, 2019, when turnover totalled Tk 25.43 billion, thanks to block transaction of GlaxoSmithKline Bangladesh.
Market analysts said the optimistic investors continued their buying appetite despite coronavirus vaccine import uncertainty news following India’s ban for a few months.
India has banned the export of the Oxford University-AstraZeneca coronavirus vaccine for several months, the head of Serum Institute of India, which has been contracted to make 1.0 billion doses of the vaccine for developing nations, including Bangladesh.
Serum Institute of India Chief Executive Adar Poonawalla said in an interview after the shot was approved on Sunday for emergency use that exports might be possible after supplying the Indian government with an initial 100 million doses.
After the previous day’s biggest-single day spike in 12 months riding on news of the approval of Covid-19 vaccine in India which faded away to some extent in the mid-session.
However, Bangladesh has an opportunity to get an exemption from the export ban imposed by India according to the agreement signed by Beximco Pharmaceuticals with the Serum Institute of India, officials said.
On November 5, 2020, Bangladesh government signed a trilateral memorandum of understanding (MoU) with India’s Serum Institute and Beximco Pharmaceuticals to purchase 30 million doses of the vaccine.
The DSE 30 Index, comprising blue chips, also gained 12.82 points to finish at 2,091. However, the DSE Shariah Index (DSES) dropped 1.64 points to close at 1,297.
Gainers took a modest lead over the losers, as out of 362 issues traded, 157 closed green, 142 in the red and 63 remained unchanged on the DSE trading floor.
Beximco topped the turnover chart with 40.36 million shares worth Tk 2.53 billion changing hands, followed by Beximco Pharma, LankaBangla Finance, LafargeHolcim and IFIC Bank.
AIBL First Islamic Mutual Fund was the day’s best performer, posting a gain of 10 per cent while BD Finance was the worst loser, losing 7.74 per cent.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index – CASPI –advancing 107 points to settle at 16,372 and the Selective Categories Index – CSCX gaining 60 points to close at 9,871.
Of the issues traded, 147 advanced, 104 declined and 40 remained unchanged on the CSE.
The port city’s bourse traded 43.19 million shares and mutual fund units with a turnover value of Tk 815 million.