Abu Taher BappaPublished:
2020-08-13 12:21:43 BdST
Stocks jump at opening amid growing confidence
Stocks on the bourses witnessed sharp rise in early trading on Thursday as enthusiastic investors continued their buying spree on large-cap issues riding on regulatory moves to restore discipline in the market.
Following previous session’s steep rise, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) opened higher amid rising trading activities.
Within first 15 minutes of trading, the key index of the country’s prime bourse soared more than 63 points while the CSE All Share Price Index (CASPI) of port city’s bourse jumped more than 140 points at 10:15 am.
After 30 minutes of trading, the DSEX rose more than 79 points while the CSE All Share Price Index (CASPI) of port city’s bourse soared 180 points at 10:30 am when the report was filed.
DSEX, the prime index of the DSE, went up by 79.21 points or 1.71 percent to reach at 4,712 points at 10:30 am.
The two other indices also saw upward trend till then. The DS30 index, comprising blue chips, rose 25 points to reach at 1,606 and the DSE Shariah Index (DSES) jumped 9.45 points to reach at 1,097 points till then.
Turnover, the important indicator of the market, stood at Tk 2.13 billion when the report was filed at 10:30am.
Market operators said the securities regulator hard stance on ensuring mandatory shareholding, exemplary punishment handed out to wrongdoers, expansionary monetary policy and some positive macro indicators encouraged investors to take position on large-cap stocks.
Investors exerted buy pressure on most of the sectors following revived optimism as regulator’s attempts to undertake strict measures for strengthening the market and some positive macro indicators gave investors a major boost, said a leading broker.
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.
As per the BSEC information, 42 listed companies have not yet complied with the directive of holding minimum 30 percent shares by their directors jointly.
The securities regulator’s latest hard stance on ensuring mandatory 2.0 percent shareholding by each director and jointly 30 percent shareholding had a positive impact on the stock prices, said a leading broker.
Of the issues traded till then, 225 advanced, 61 declined, and 35 remained unchanged.
Beximco was the most traded stocks till then with shares worth Tk 195 million changing hands, closely followed by Brac Bank, Sonar Bangla Insurance, Peoples Insurance and Baraka Power.
The port city bourse – the Chittagong Stock Exchange – (CSE) also saw upward trend till then with CSE All Share Price Index- CASPI-rising 180 points to stand at 13,345, also at 10:30am.
The Selective Category Index – CSCX –also gained 102 points to stand at 8,064 points till then.
Of the issues traded till then, 84 gained, 14 declined, and 15 issues remained unchanged with Tk 26 million in turnover.
Unauthorized use or reproduction of The Finance Today content for commercial purposes is strictly prohibited.