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Banking sector dominates the turnover chart

Stocks break five-day losing streak

FE REPORT | July 21, 2020 00:00:00

Stocks broke the five-day losing streak on Monday as the buoyant investors showed their buying binge on major sectors' issues at the lowest possible prices amid the floor price system.

The market opened on positive note and remained upbeat throughout the session as investors showed buying spree on sector specific stocks after five-day price fall.

DSEX, the key index of the Dhaka Stock Exchange, went up by 19.50 points or 0.48 per cent to settle at 4,050, after losing 49 points in the past five straight sessions.

Two other indices also edged higher. The DS30 index, comprising blue chips, advanced 8.04 points to finish at 1,364 and the DSE Shariah Index rose 5.06 points to close at 944.

Market operators said investors showed buying appetite on the selective issues riding on optimism owing to gradual reopening of the economy and revival of some specific sectors' activity.

The securities regulator's hard stance on ensuring mandatory 2.0 per cent shareholding by each director of listed companies had also a positive impact on the stock prices.

However, the market has been struggling with a poor participation of investors for long due to the regulator-set floor price mechanism and no signs of improving the ongoing Covid-19 situation, said a leading broker.

Turnover, another important indicator of the market, remained low and amounted to Tk 2.40 billion on the country's prime bourse, which was 2.56 per cent higher than the previous day's turnover of Tk 2.26 billion.

The banking sector dominated the turnover chart, grabbing 25 per cent of the day's total transaction, followed by general insurance with 20 per cent and pharmaceuticals 18 per cent.

Most of the shares remained stuck at the trading. Of the issues traded, 203 remained unchanged while 113 issues advanced and 17 declined on the DSE floor.

International Leasing Securities said the market backed to green riding on the news that the securities regulator has formed five committees for reviewing the regulatory framework and different rules, regulations and laws for the interest of the investors in the capital market.

Among the major sectors, general insurance posted the highest gain of 4.3 per cent, followed by life insurance with 2.6 per cent, telecom0.9 per cent and banking 0.50 per cent.

A total number of 54,466 trades were executed in the day's trading session with a trading volume of 84.20 million shares and mutual fund units.

The market-cap on the premier bourse also rose to Tk 3,162 billion on Monday, from Tk 3,150 billion in the previous session.

Grameenphone topped the turnover chart with shares worth Tk 124 million changing hands, closely followed by Square Pharma, Beximco Pharma, Pioneer Insurance and Indo-Bangla Pharma.

Dhaka Insurance was the day's best performer, posting a gain of 9.89 per cent while UCB was the worst loser, losing 8.46 per cent.

The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI)-advancing 62 points to close at 11,577 and the Selective Categories Index - CSCX -gaining 37 points to finish at 7,016.

Of the issues traded, 66 gained, 15 declined and 97 remained unchanged on the CSE.

The port city bourse traded 2.13 million shares and mutual fund units with turnover value of Tk 63 million.

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