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Beximco Pharma tops DSE turnover chart for 17 days

Ten most-traded stocks snare 23pc turnover

FE REPORT | November 23, 2020 00:00:00

Beximco Pharmaceuticals dominated the Dhaka Stock Exchange's turnover chart for the last 17 straight sessions on Sunday while top 10 most traded companies grabbed 23 per cent transaction.

The drug maker's share price also doubled in four months as investors are showing their appetite on its shares after signing a deal with India's Serum Institute to supply Covid-19 vaccines in Bangladesh.

Each share of Beximco Pharma was traded for Tk 74.70 on July 22 this year, which closed at Tk 143.60 on Sunday, soaring 92 per cent in four months, according to data from the DSE.

Market experts said buoyed by the soaring demand for stocks of drug makers amid Covid-19 pandemic, investors continued to show their interest in pharma stocks, particularly Beximco Pharma.

Recently, the government signed a trilateral memorandum of understanding (MoU) with Serum Institute of India (SII) and the Beximco Pharma to collect 30 million doses of Covid-19 vaccines from Serum.

Once the vaccine is approved for human application, Beximco Pharma will buy each dose from Serum for US$4 and supply it to the government for US$5 on a priority basis, according to the deal.

Beximco Pharma also introduced remdesivir under the brand name Bemsivir, an antiviral drug that has proved effective in treating Covid-19 patients.

The stock market regulator's strict stance to comply with the directive on holding minimum shares also created a 'buying' pressure on its shares as the company's directors jointly held only 13.19 per cent shares as of October 31, 2020, said a leading broker.

According to available data with the DSE, some 2.97 million shares of the Beximco Pharma were traded on Sunday, generating a turnover of Tk 432 million, which was 8.72 per cent of the day's total turnover.

The drug maker's share closed at Tk 143.60 on Sunday, losing 2.64 per cent over the previous day.

Beximco Pharma's consolidated earnings per share (EPS) jumped to Tk 2.65 for July-September 2020 as against Tk 2.13 for July-September 2019.

The Beximco Pharma has recommended 15 per cent cash and 10 per cent stock dividend for the year ended on June 30, 2020.

Bangladesh Export Import Company (Beximco) came second on the turnover chart, with shares worth Tk 127 million changing hands. The company's share price dropped 1.29 per cent to close at Tk 22.90 each.

ADN Telecom clinched the third spot, with shares worth Tk 105 million changing hands. The company's share closed at Tk 50.60, gaining 2.01 per cent over the previous day.

Paramount Insurance emerged as the fourth, with shares worth Tk 81 million changing hands. The insurer's share closed at Tk134.20, gaining 0.60 per cent.

Brac Bank notched the fifth spot, with shares worth Tk 72 million changing hands. The bank's share closed at Tk 45.20, losing 1.09 per cent.

SS Steel (Tk 68 million), Quasem Industries (Tk 63 million), Grameen One: Scheme Two Mutual Fund (Tk 62 million), Provati Insurance (Tk 62 million) and Pioneer Insurance (Tk 61 million), also included on the day's top turnover list.

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