Stocks rebound amid rising turnover
DSE daily turnover jumps 104pc
Stocks rebounded on Monday with soaring turnover as some investors went on buying binge riding on the regulatory move for ensuring mandatory shareholding rules.
The stock market regulator has 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.
The securities regulator sent a letter to all the companies on July 2, asking them to comply with the mandatory shareholding rules by each director other than the independent one which created some buying pressure, said a leading broker.
DSEX, the key index of the Dhaka Stock Exchange, went up by 13.13 points or 0.32 per cent to settle at 3,994.
Two other indices also edged higher. The DS30 index, comprising blue chips, rose 6.60 points to finish at 1,342 and the DSE Shariah Index advanced 0.91 points to close at 921.
Turnover, another important indicator of the market, stood at Tk 1.50 billion on the country’s prime bourse, climbing by 104 per cent over the previous day’s turnover of Tk 734 million.
Market analysts, however, said the investors were worried about the adverse impact of worsening pandemic situation with looming uncertainty about economic growth and the regulator-enforced floor price system.
Lack of institutional buyers coupled with the current floor price mechanism is preventing many investors from selling shares, said a merchant banker.
He noted that the investors have failed to sell shares of more than two- thirds companies due to the floor price restriction.
Most of the shares remained stuck on the trading floor. Of the issues traded, 216 remained unchanged while 57 issues advanced and 23 declined on the DSE floor.
A total number of 25,022 trades were executed in the day’s trading session with a trading volume of 47.69 million shares and mutual fund units.
The market-cap on the premier bourse also rose to Tk 3,120 billion on Monday, from Tk 3,115 billion in the previous session.
Beximco Pharma topped the turnover chart with shares worth Tk 104 million changing hands, followed by Square Pharma, Indo-Bangla Pharma, Bangladesh Submarine Cable, and Wata Chemicals.
Pubali Bank was the day’s best performer, posting a gain of 10 per cent while Beximco Synthetics was the worst loser, losing 6.25 per cent.
The Chittagong Stock Exchange also ended marginally higher with its All Shares Price Index (CASPI)—advancing 32 points to close at 11,338 and the Selective Categories Index - CSCX –gaining 21 points to finish at 6,866.
Of the issues traded, 36 gained, 16 declined and 67 remained unchanged on the CSE.
The port city bourse traded 2.35 million shares and mutual fund units with a turnover value of Tk 891 million.