Weekly market review

Stocks stay afloat amid rising confidence

DSE market-cap hits 20-month high to Tk 4,106 billion


Babul Barman | Published: December 11, 2020 20:36:56


Stocks stay afloat amid rising confidence

Stocks extended the winning streak with core index of the Dhaka Stock Exchange (DSE) hitting nearly three months high riding on regulatory moves and gradual improvement of economic activities.
Week-on-week, DSEX, the core index of the DSE, went up by 119.82 points or 2.41 per cent to settle at 5,094. It was the highest level of the prime index since September 17 this year.
The DSEX added more than 225 points in two straight weeks while market capitalisation surged to Tk 201 billion during the period under review.
The DSE market-cap rose to Tk 4,106 billion on Thursday, hitting more than 20 months high since April 2, last year when market cap recorded Tk 4,140 billion.
Market analysts said the optimistic investors continued their buying appetite on sector-wise large-cap stocks amid growing confidence in the market riding on regulatory moves to restore discipline in the market.
The investors' enthusiasm sustained, as the institutional investors, including global fund managers, were putting fresh stakes on stocks amid positive expectation, said a merchant banker.
He noted that the 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, also tempted the investors to stay afloat.
The stock market regulator's moves to restructure boards of some 20 listed companies which sponsor-directors fail to hold minimum 30 per cent shares jointly, also attracted the investors, he said.
The regulatory measures were crucial for the rise in the confidence of the stock investors, which geared up the index and turnover, he added.
The news that 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, also encouraged investors.
Regulatory moves particularly regarding bond trading, IPO approval and disciplinary action boosted investors' confidence to the market, commented EBL Securities.
The stockbroker noted that the investors are deemed to remain optimistic on the vibrant capital market in days ahead based on a strong economic turnaround in this unprecedented time.
The week featured five trading sessions as usual. Of them, four sessions ended higher while one faced marginal correction.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index - CASPI -soaring 340 points to settle at 14,602 and the Selective Categories Index - CSCX jumping 202 points to close at 8,789.
Of the issues traded, 164 advanced, 88 declined and 60 remained unchanged on the CSE.
The port city's bourse traded 76.37 million shares and mutual fund units with turnover value of Tk 1.67 billion during the week.

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