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DSEX exceeds 5,000-mark after two months

The key index adds 158 points in three sessions

FE REPORT | December 07, 2020 00:00:00

The core index of the Dhaka Stock Exchange (DSE) crossed the 'psychological' threshold of 5,000-mark after more than two months on Sunday riding on regulatory moves and gradual improvement of economic activities.

DSEX, the key index of the Dhaka Stock Exchange (DSE), soared 49.54 points or 0.99 per cent to settle at 5,024. The benchmark index added more than 158 points in the past four consecutive sessions.

Two other indices also ended higher. The DS30 index, comprising blue chips, rose 21.51 points to finish at 1,748 and the DSE Shariah Index soared 15.27 points to close at 1,150.

Market operators said investors showed their buying appetite on sector-wise stocks amid growing confidence in the market riding on regulatory moves to restore discipline in the market.

The enthusiastic investors were active on the trading floor following the news that Forbes list of Asia's 200 Best Under $1b, included three Bangladeshi listed firms - Square Pharma, Renata, and Fortune Shoes--commented International Leasing Securities.

Following the news, share prices of Fortune Shoes, Square Pharma and Renata rose 9.24 per cent, 2.78 per cent and 1.26 per cent respectively.

Three Bangladeshi listed firms have entered into the greatly desired Forbes list of under US$ 1.0 billion Company for 2020 from Asia and the Pacific region.

A positive trend in November exports depicted a sign of economic recovery which is expected to generate satisfactory bottom-line of the listed companies in the coming months, commented EBL Securities.

The stock market regulator's moves to restructure the boards of the listed companies which sponsor-directors fail to hold minimum 30 per cent shares jointly, also attracted the investors, said a merchant banker.

He noted that the regulatory measures were crucial for the rise in the confidence of the stock investors, which geared up the index and turnover.

The expected arrival of an effective vaccine and sign of returning to normalcy by early next year, investors believe the stock market is likely to retain strength with economic recovery, he added.

Top positive index contributors of the market were Grameenphone, Square Pharma, Brac Bank, Investment Corporation of Bangladesh, Renata-jointly accounted for 55 points to the DSEX, according to data of amarstock.com, a stock market data analyst.

Turnover, a crucial indicator of the market, rose to Tk 8.43 billion, which was 2.55 per cent higher than the previous day's turnover of Tk 8.22 billion.

Among the major sectors, financial institutions posted the highest gain of 2.50 per cent, followed by engineering with 2.0 per cent, telecom 1.90 per cent, pharma 1.50 per cent and banking 1.0 per cent.

General insurance and mutual fund sectors faced correction, losing 4.10 per cent and 2.0 per cent respectively.

Gainers took a strong lead over the losers as out of 354 issues traded, 154 ended higher, 120 lower and 80 issues remained unchanged on the DSE trading floor.

A total number of 178,327 trades were executed in the day's trading session with a trading volume of 333.32 million shares and mutual fund units.

The market capitalisation of DSE rose to Tk 4,030 billion on Sunday, from Tk 3,992 billion in the previous day.

The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI)-soaring 161 points to close at 14,424 while the Selective Categories Index - CSCX rising 94 points to close at 8,681. Of the issues traded, 135 advanced, 76 declined and 45 remained unchanged on the CSE.

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