Stocks surged on Sunday, extending the winning streak for the fifth straight session, as the buoyant investors continued their buying spree at the lowest possible prices amid the floor price system.
DSEX, the key index of the Dhaka Stock Exchange, went up by 37.85 points or 0.93 per cent to settle at 4,099 during four hours trading.
On March 19, the stock market regulator set the floor price for all stocks based on the average prices of the previous five days to stop the free-fall of index due to Covid-19 pandemic.
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 price.
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 investors, said a merchant banker.
The stock market regulator, in cooperation with the Bangladesh Bank, is also inspiring banks to buy stocks at a lucrative price level, also attract 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.
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, almost same from the previous session.
International Leasing Securities said some investors continued to bargain hunting and reshuffled their portfolios at the lowest possible price amid floor price limitation.
Most of the shares remained stuck at the trading. Of the issues traded, 168 remained unchanged while 122 issues advanced and 59 declined on the DSE floor.
A total number of 78,235 trades were executed in the day’s trading session with a trading volume of 106.70 million shares and mutual fund units.
The market-cap on the premier bourse also rose to Tk 3,178 billion on Sunday, from Tk 3,150 billion in the previous session.
Beximco Pharma topped the turnover chart with shares worth Tk 175 million changing hands, followed by Bangladesh Submarine Cable, Square Pharma, Beacon Pharma and ML Dyeing.
ML Dyeing was the day’s best performer, posting a gain of 10 per cent while Pubali Bank was the worst loser, losing 9.56 per cent following its price adjustment after record date.
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.
