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Stocks witnessed a steep rise in early trading on Sunday as enthusiastic investors continued their buying spree on large-cap issues riding on regulatory moves to restore discipline in the market.
Following the previous week’s sharp gain, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) opened on high note amid rising trading activities.
Within the first 15 minutes of trading, the key index of the country’s prime bourse soared more than 75 points while the CSE All Share Price Index (CASPI) of port city’s bourse jumped more than 95 points at 10:15 am.
After 30 minutes of trading, the DSEX rose more than 84 points while the CSE All Share Price Index (CASPI) of port city’s bourse soared 109 points at 10:30 am when the report was filed.
DSEX, the prime index of the DSE, went up by 84.53 points or 1.79 per cent to reach at 4,787 points at 10:30 am.
The two other indices also saw upward trend till then. The DS30 index, comprising blue chips, rose 15 points to reach at 1,609 and the DSE Shariah Index (DSES) jumped 8.42 points to reach at 1,096 points till then.
Turnover, the important indicator of the market, stood at Tk 2.35 billion when the report was filed at 10:30 am.
Market insiders said investors enthusiasm sustained as local and foreign investors remained active in the market amid high hopes following regulatory moves to restore discipline in the market.
The stock market regulator’s strict stance on ensuring mandatory shareholding, exemplary punishment handed out to wrongdoers coupled with some positive macro indicators prompted investors to take position on large-cap stocks, said a merchant banker.
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.
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, he added.
Of the issues traded till then, 282 advanced, 47 declined, and 13 remained unchanged.
Brac Bank was the most traded stocks till then with shares worth Tk 231 million changing hands, closely followed by IFIC Bank, Sonar Bangla Insurance, Republic Insurance and Beximco.
The port city bourse – the Chittagong Stock Exchange – (CSE) also saw upward trend till then with CSE All Share Price Index- CASPI-rising 109 points to stand at 13,470, also at 10:30 am.
The Selective Category Index – CSCX –also gained 51 points to stand at 8,124 points till then.
Of the issues traded till then, 109 gained, 10 declined, and 9 issues remained unchanged with Tk 38 million in turnover.