Stocks soar at opening amid easing of lockdown worries

FE ONLINE REPORT | Sunday, 25 April 2021

Stocks opened higher on Sunday as optimistic investors continued their buying appetite on sector-wise issues amid the easing of lockdown worries.

The market jumped in early trading and DSEX, the benchmark index of Dhaka Stock Exchange (DSE), rose 45.35 points or 0.83 per cent to stand at 5,480 within the first 30 minutes of trading.

Market analysts said the enthusiastic investors, mostly institutional ones, put fresh stakes on stocks amid the easing of the lockdown worries.

Despite the ongoing ‘strict’ lockdown, the government has allowed shops and shopping malls to reopen from 10 am to 5 pm from today.

Easing virus-induced lockdown restrictions, lucrative price levels of stocks, increased marginal loan limits coupled with lowering the circuit breaker for several companies prompted investors to put fresh funds on stocks, said a leading merchant banker.

“Continuous growth in turnover pushed investors’ confidence high and high volume suggested that institutional investors were largely active in the market,” he said.

The Bangladesh Securities and Exchange Commission (BSEC) has asked the scheduled banks to provide the latest information on the special fund formed to invest in the stock market.

In line with the concerned regulator’s request to support the market during the pandemic, the banks have already started investing in the stock market from the special funds, said a BSEC official.

Two other indices also opened higher till then with the DS30 index, comprising blue chips, advancing 23.77 points to reach 2,111 and Shariah Index (DSES) rising 12.98 points to stand at 1,250 points.

Turnover, another important indicator of the market, stood at Tk 2.88 billion within the first 30 minutes of trading when the report was filed at 10:30am.

Of the issues traded till then, 194 advanced, 73 declined and 50 remained unchanged on the DSE trading floor till then.

Beximco - the flagship company of Beximco Group - was the most traded stocks till then with shares worth Tk 480 million changing hands, followed by Lafarge Holcim, Beximco Pharma, Dhaka Insurance and LankaBangla Finance.

Chittagong Stock Exchange (CSE) also opened higher with its CSE All Share Price Index (CASPI) gaining 56 points to stand at 15,780, also at 10:30am.

Of the issues traded till then 47 advanced, 25 declined and 14 remained unchanged with Tk 59 million in turnover.


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