FE Today Logo

Stocks stay afloat amid regulatory moves

DSEX hits four-month high on buying spree

FE REPORT | July 13, 2020 00:00:00

Stocks surged on Sunday with key index of the prime bourse hitting four months high as the buoyant investors continued their buying binge amid growing investors' confidence.

DSEX, the key index of the Dhaka Stock Exchange, went up by 37.85 points or 0.93 per cent to settle at four months high at 4,099 during the four hours trading.

The core index added 118 points in the five straight sessions and reached four months high since March 12, although trading was suspended for two months (March 26 to May 30).

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

The stock market regulator has recently asked 61 directors of 22 listed companies to ensure a minimum 2.0 per cent shares in their own companies within 45 days to continue their directorship.

So the companies, whose directors have failed to hold the minimum shares will have to buy shares within the 45-day time frame which attracted general investors, said a merchant banker.

The stock market regulator, in cooperation with the Bangladesh Bank, is inspiring banks to buy stocks at a lucrative price level is also attracting investors, said a leading broker.

The central bank's recent directive on easing foreign investment and increase fund flow from the banking sector created a positive impact, he said.

According to UCB Capital Management, stocks extended winning streak riding on investors' optimism owing to gradual reopening of the economy and revival of some specific sectors' activity.

Two other indices also ended higher. The DS30 index, comprising blue chips, rose 14.34 points to finish at 1,383 and the DSE Shariah Index advanced 15.90 points to close at 954.

Turnover, another important indicator of the market, stood at Tk 3.47 billion on the country's prime bourse, remained almost same over the previous session.

Telecom, pharma, financial institution sectors gained 2.0 per cent, 1.93 per cent and 1.70 per cent respectively while investors booked some quick gain on general insurance and banking sector, losing 0.58 per cent and 0.25 per cent respectively.

The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI)-advancing 63 points to close at 11,600 and the Selective Categories Index - CSCX -gaining 40 points to finish at 7,029.

Of the issues traded, 69 gained, 35 declined and 104 remained unchanged on the CSE.

The port city bourse traded 4.66 million shares and mutual fund units with turnover value of Tk 153 million.

[email protected]

Share if you like