Abu Taher Bappa

Published:
2020-03-25 21:22:25 BdST

Stocks end in green on banking sector stimulus


NEWS DESK

Bourses wrapped up trading with gains today as investors opted for buying banking stocks after the sector's pouring of fresh funds in the market.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), advanced 32 points, or 0.8 percent, to close the day at 4,008.

The Shariah-based DSES index also inched up 3 points, or 0.4 percent, to settle at 921, while the blue-chip index DS30 went up 7 points, or 0.5 percent, to stand at 1,331.

At the Chittagong Stock Exchange (CSE), the benchmark index Caspi gained 78 points, or 0.7 percent, to close at 11,328.

Investor's participation remained low during the initial hours of trade, but the indices then gradually picked up growth in their intraday performance graphs. The market held on to this momentum throughout the entire session and displayed a moderate climb during the last 30 minutes of the trading session.

Investors exerted buying pressure on banking stocks in anticipation that the banking sector would declare satisfactory dividends, stated the Daily Market Review of UCB Capital Management Ltd.

Both the bourses will remain closed from March 26 to April 4 in line with the government's declared general holiday to limit the transmission of coronavirus in the country.

As a result, investors were mostly inactive as they could not go for profit-taking in the last trading day before the 10-day hiatus, due to the fixing of floor price of each share by the securities regulator, added the review.

According to the Daily Market Review of EBL Securities Ltd, the block trade ─ sale or purchase of a large number of securities ─ of Renata Ltd resulted in a significant jump in the total turnover today.

Institutional investors especially banks have injected new funds to shore up the stock market while the economy is in dire straits, the review added.

Almost all the sectors posted gains today except jute and mutual funds, each facing 0.1 percent price slide and papers and food remaining unchanged in the sector return board. The life insurance sector exhibited the highest price appreciation of 2.6 percent.

Among the large-cap sectors, banks gained 1.7 percent price, cement sector gained 1.2 percent, pharmaceuticals and financial institutions each gained 0.3 percent and the telecom sector edged up 0.1 percent.

Turnover at the DSE increased 150 percent to Tk348.1 crore today, from Tk139.5 crore in the previous session.

Turnover at the port city bourse also went up 37 percent from Tk81.9 crore to Tk112.1 crore.

The pharmaceuticals sector once again contributed the most, 77.6 percent, to the total turnover value, followed by banking stocks adding 9.1 percent and the fuel and power sector adding 2.1 percent in the sector-wise turnover distribution board.

Renata Ltd topped the turnover chart with a turnover value of Tk7 crore, closing the day at Tk1,026.2 per share. The stock was followed by Monno Ceramic Industries Ltd with a turnover value of Tk6.6 crore, closing at Tk135.1 per share.

ACI Formulations Ltd was the best performer in the gainers' table, gaining 9.9 percent and closing at Tk108.9 per share.

Premier Cement Mills Ltd was the worst loser shedding 6.5 percent and closing at Tk63.5 per share, said the DSE website.

Out of the 349 issues traded today, 96 advanced, 17 declined, and 236 remained unchanged on the DSE trading floor.

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