Bourses keep gaining amid soaring turnover

Stocks kept the soaring trend with core index of the Dhaka Stock Exchange (DSE) crossed the 4,800-mark after 10 months as investors continued their buying spree on large-cap issues amid optimism.

DSEX, the key index of the DSE, went up by 156.16 points or 3.32 percent to settle at 4,859 during the four and a half hours trading session.

Daily trade turnover on DSE also scaled Tk 13-billion mark on Sunday again as investors put fresh stakes on stocks amid growing confidence in the market.

Turnover, a crucial indicator of the market, stood at Tk 13.51 billion on the country’s premier bourse, climbing further by 12 percent over previous day’s mark of Tk 12.08 billion.

It was the biggest single-day turnover in the last seven weeks since June 28, this year when turnover totalled Tk 25.43 billion riding on huge block trade of GSK Bangladesh.

Market insiders said investor 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 percent shares jointly by the directors, other than independent ones, within 60 working days from July 29, 2020.

The securities regulator’s latest stance on ensuring mandatory 2.0 percent shareholding by each director and 30 percent shareholding jointly had a positive impact on the stock prices, said a leading broker.

The market turnover has been staying above Tk 10 billion over the last five consecutive sessions as the investors took fresh position on sector specific stocks, said the stockbroker.

Two other indices also ended higher. The DS30 index, comprising blue chips, advanced 45.58 points to finish at 1,639 and the DSE Shariah Index rose 21.42 points to close at 1,109.

Gainers outnumbered the losers, as out of 354 issues traded, 301 closed higher and 42 closed lower while 11 issues remained unchanged on the DSE floor.

A total number of 230,966 trades were executed in the day’s trading session with a trading volume of 514.41 million shares and mutual fund units.

The market-cap on the premier bourse also rose to Tk 3,635 billion on Sunday, from Tk 3,550 billion in the previous session.

Beximco Pharmaceuticals topped the turnover chart with shares worth Tk 806 million changing hands, closely followed by Beximco, Brac Bank, Square Pharma and Sonar Bangla Insurance.

PHP First Mutual Fund was the day’s best performer, posting a gain of 13.95 percent while Eastern Cables was the worst loser, losing 3.49 percent.

The Chittagong Stock Exchange ended higher with its All Shares Price Index (CASPI)—jumping 494 points to close at 13,855 and the Selective Categories Index - CSCX –soaring 288 points to finish at 8,361.

Of the issues traded, 251 gained, 25 declined and 20 remained unchanged on the CSE.

The port city bourse traded 26.92 million shares and mutual fund units with turnover value of Tk 460 million.