Dhaka Stock Exchange (DSE), the country’s prime bourse, has experienced another session of buyer dominance and ended the week with an upbeat vibe since optimistic investors continued their chase for quick rallies in particular sector-specific scrips.
On Thursday, the market turnover crossed the Tk 1,800 crore mark after around 17 months, rising by 7.4 per cent to Tk 1,857 crore from the previous session’s Tk 1,730 crore.
The key index, DSEX, gained 20.85 points and closed at 6,373.35 at the end of trading, while the blue-chip index, DS30, and the Shariah-based index, DSES, closed at 2,138.22 and 1,387.32 points, respectively.
The market witnessed mild volatility throughout the session since cautious investors were engaged in profit booking to realise their recent gains and preferred to observe the sustainability of the current upbeat vibe in the market, EBL Securities said in its daily market review.
Moreover, it said, investors also showed interest in the giant bank sector, as they deemed the price level of particular bank stocks to be at an attractive level.
Of the 394 issues traded, 208 advanced, 139 declined and 47 remained unchanged at the Dhaka bourse.
Most of the large-cap sectors posted negative performance on Thursday.
Pharmaceuticals experienced the highest loss of 0.43 per cent while Block trades contributed 1.8 per cent of the overall market turnover. Central Pharmaceuticals Limited was the most traded share, with a turnover of Tk 65 crore.
On the sectoral front, Pharmaceutical issues exerted the highest turnover, followed by Engineering and Textile. Sectors displayed mixed returns, out of which Travel, Jute, and Services exhibited the most positive returns on the bourse, while Ceramics, Paper, and IT exerted the most correction.
Meanwhile, the Chittagong Stock Exchange (CSE) also settled on green terrain on Thursday as the selected indices, CSCX, and All Share Price Index, CASPI, advanced by 72.7 and 120.9 points, respectively.
Dhaka bourse’s daily turnover crossed Tk 1,800 crore for the first time since the floor price on most of the listed companies was removed recently by the Bangladesh Securities and Exchange Commission (BSEC).
Last Tuesday, BSEC withdrew the floor price for six more companies’ shares. The order came into effect on Wednesday for Orion Pharmaceuticals, Anwar Galvanizing and Renata Ltd, and will remain in effect until further notice.
The other three companies — British American Tobacco Bangladesh, Grameenphone and Robi — will have the floor price until their forthcoming record date.
Only six companies now share the floor price. These are Beximco Ltd, BSRM Ltd, Islami Bank, Khulna Power, Meghna Petroleum and Shahjibazar Power.
On January 18, after the session's closing bell, the stock market regulator issued an order rescinding the floor price for all listed companies and mutual funds, except for 35 companies' shares, complying with a long-standing demand from stakeholders.
On January 21, DSEX fell 96.50 points, or 1.52 per cent, in the first trading session after the floor price withdrawal. After five minutes of trading, the key index had plunged about 214 points but later recovered most of the initial losses.
The next day, DSEX gained 14.05 points and closed at 6,254.31. The stock market regulator also withdrew the floor price for 23 more companies that day.
Market insiders said the key index was very much expected to fall as a large number of stocks failed to see price discovery for a long time due to the floor price.
They added that many investors did not get the opportunity to trade due to the prolonged price level. As a result, there was pressure to sell shares at the beginning of the day, but it gradually decreased.
Welcoming the floor withdrawal move, a leading stock broker said the market might see some corrections in the first few days. It is nothing to be afraid of, and the market will recover very soon.
On July 28, 2022, the BSEC imposed floor prices on all securities to prevent shares from falling beyond a certain level amid domestic and global macroeconomic strains.
The share prices of most companies have been stuck at their floor prices for an extended period, pushing investors towards liquidating their holdings and creating a liquidity crisis in the market.
