Stocks open higher amid soaring turnover
Stocks witnessed an upward trend in early trading on Thursday as optimistic investors showed their appetite following the minimum shareholding ultimatum by the stock market regulator.
Within 30 minutes of trading, DSEX gained more than 22 points while the CSE All Share Price Index (CASPI) of port city’s bourse rose 59 points at 11:00 am when the report was filed.
DSEX, the prime index of the DSE, went up by 22.50 points or 0.55 per cent to stand 4,057 points at 11:00 am.
Turnover, the important indicator of the market, stood at Tk 1.18 billion on DSE when the report was filed at 11:00 am.
Market operators said the securities regulator’s ultimatum to non-compliant directors of listed firms to ensure holding of minimum 2.0 per cent shares within 45 days led the buying pressure in the market.
The stock market regulator has recently asked 61 directors of 22 listed companies to ensure a minimum 2.0 per cent shares in their own companies within 45 days to continue their directorship.
If any director fails to comply with the 2.0 per cent shareholding rules within the stipulated time, his/her position would be automatically vacated, according to the Rules.
To comply with the rules, many directors will have to buy shares within the 45-day time frame which boost the investors’ confidence, said a leading broker.
Two other indices also saw upturn till then. The DS30 index, comprising blue chips, advanced 9.33 points to reach at 1,366 and DSE Shariah Index gained 7.50 points to stand at 936 points till then.
Square Pharma was the most traded stocks till then with shares worth Tk 398 million changing hands, followed by GP, Beximco Pharma, Beacon Pharma, and Nahee Aluminum.
The port city’s bourse – the Chittagong Stock Exchange – (CSE) also saw upward trend till then with the CSE All Share Price Index- CASPI-gaining 59 points to stand at 11,508 points, also at 11:00am.
The Selective Category Index – CSCX – also rose 38 points to stand at 6,971 points till then.
Of the issues traded till then, 30 advanced, 6 declined and 49 issues remained unchanged with Tk 19 million in turnover.