3 years ago

Stocks keep gaining amid soaring turnover

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Stocks extended the winning streak for the four consecutive sessions on Thursday as the optimistic investors continued their appetite following the minimum shareholding ultimatum by the securities regulator.

DSEX, the key index of the Dhaka Stock Exchange, went up by 26.91 points or 0.66 per cent to settle at more than one month high at 4,061 during four hours trading.

Two other indices also ended higher. The DS30 index, comprising blue chips, rose 11.86 points to finish at 1,369 and the DSE Shariah Index gained 10.32 points to close at 938.

Turnover, another important indicator of the market, rose to Tk 3.45 billion on the country’s prime bourse, which was 50 per cent higher than the previous day’s turnover of Tk 2.31 billion.

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.

According to the Rules, 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.

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.

A section of investors, however, remained worried about the adverse impact of worsening pandemic situation with looming uncertainty about economic growth and the regulator-enforced floor price system, said a merchant banker.

Most of the shares remained stuck on the trading floor. Of the issues traded, 201 remained unchanged while 103 issues advanced and 45 declined on the DSE floor.

A total number of 66,988 trades were executed in the day’s trading session with a trading volume of 100.49 million shares and mutual fund units.

The market-cap on the premier bourse also rose to Tk 3,150 billion on Thursday, from Tk 3,135 billion in the previous session.

Square Pharma topped the turnover chart with shares worth Tk 662 million changing hands, followed by Grameenphone, Beximco Pharma, Beacon Pharma, and Nahee Aluminum.

GQ Ball Pen was the day’s best performer, posting a gain of 9.97 per cent while C&A Textile was the worst loser, losing 5.26 per cent.

The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI)—advancing 87 points to close at 11,536 and the Selective Categories Index - CSCX –gaining 55 points to finish at 6,989.

Of the issues traded, 49 gained, 26 declined and 118 remained unchanged on the CSE.

The port city bourse traded 4.30 million shares and mutual fund units with a turnover value of Tk 143 million.

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