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Stocks keep soaring amid rising confidence

DSE market-cap adds Tk 146b in five days

FE REPORT | December 08, 2020 00:00:00

Stocks extended the winning streak for the fifth straight session on Monday as the buoyant investors continued their appetite on large-cap issues amid investors' growing confidence in the market.

DSEX, the core index of the Dhaka Stock Exchange (DSE), went up by 29.10 points or 0.57 per cent to settle at 5,053.

The key index added more than 187 points in the past five consecutive sessions while market capitalisation showedTk 146 billion as increase during the period under review.

Two other indices also ended higher. The DS30 index, comprising blue chips, rose 14.57 points to finish at 1,763 and the DSE Shariah Index gained 8.83 points to close at 1,159.

Market operators said the enthusiastic investors continued their buying appetite on large-cap stocks amid growing confidence riding on regulatory moves and gradual improvement of economic activities.

The investors' enthusiasm sustained, as the institutional investors, including global fund managers, were putting fresh stakes on stocks, said a merchant banker.

The securities regulator is continuing its effort to enhance the market depth through listing of large-cap companies having good fundamentals and the news that some big companies are waiting for necessary approval for listing, tempted the investors to stay afloat in the market, commented International Leasing Securities.

The stockbroker noted that the enthusiastic participation in power, pharma, telecom and banking sectors helped the benchmark index to remain vibrant.

Three Bangladeshi listed firms -- Square Pharma, Renata, and Fortune Shoes -- have entered into the greatly desired Forbes list of under US$ 1.0 billion company for 2020 from Asia and the Pacific region.

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

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.

Top positive index contributors of the market were Square Pharma, Grameenphone, United Power, Berger Paints and Islami Bank, according to data of amarstock.com, a stock market data analyst.

Turnover, a crucial indicator of the market, rose to Tk 8.48 billion, which was 0.60 per cent higher than the previous day's turnover of Tk 8.43 billion.

Among the major sectors, power posted the highest gain of 1.10 per cent, followed by pharmaceuticals with 0.80 per cent and banking 0.60 per cent.

Financial institutions, telecom, engineering and food sectors faced correction, losing 1.20 per cent, 0.60 per cent, 0.30 per cent and 0.10 per cent respectively.

Losers, however, took a modest lead over the gainers as out of 353 issues traded, 140 ended lower, 126 higher and 87 issues remained unchanged on the DSE trading floor.

A total number of 170,937 trades were executed in the day's trading session with a trading volume of 330.61 million shares and mutual fund units.

The market capitalisation of DSE rose to Tk 4,045 billion on Monday, from Tk 4,030 billion in the previous day.

Beximco topped the turnover list with 19.31 million shares worth Tk 554 million changing hands, closely followed by Republic Insurance, IFIC Bank and Fortune Shoes.

Miracle Industries was the day's best performer, posting a gain of 9.84 per cent while CAPM IBBL Islamic Mutual Fund was the worst loser, losing 7.83 per cent.

The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI)-advancing 72 points to close at 14,496 while the Selective Categories Index - CSCX- rising 45 points to close at 8,727.

Of the issues traded, 115 advanced, 98 declined and 56 remained unchanged on the CSE.

The port city bourse traded 20.11 million shares and mutual fund units with turnover value of more than Tk 439 million.

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