Drugmakers fuel Dhaka stocks’ momentum
Dhaka shares yesterday maintained previous week's gaining momentum riding on the soaring demand for shares of drug manufacturers amid the Covid-19 pandemic.
The DSEX, the benchmark index of Dhaka STOCK MARKET, rose 37.85 points, or around 1 % to stand at 4,099.42.
Some people went on a buying spree as the costs of several stocks have been down to an extremely low level at the same time when the federal government gave the go-ahead to the investment of untaxed profit the currency markets, said a high official of a brokerage home.
Some banks formed funds to purchase the lucrative currency markets but they are yet to get started on making buys, he said.
The investors are actually choosing the pharmaceutical and it sector stocks and shares as these sectors remained almost unhurt when the coronavirus pandemic has been destroying others, he added.
The virtually all traded company was Beximco Pharmaceuticals that exchanged shares worth Tk 17.53 crore, followed by Bangladesh Submarine Cables, Square Pharmaceuticals, Beacon Pharmaceuticals and ML Dyeing, based on the DSE data.
Of the total 32 listed pharmaceuticals companies, 18 rose, 8 declined and 6 remained unchanged.
Some big buyers are pouring money in to the market to take benefit of the lower prices, said a merchant banker.
"Banks are however to get here. The market will be more vibrant if indeed they start buying because they have a huge amount of funds," he said.
Some 14 banking institutions formed a fund of Tk 1,650 crore to get into the currency markets by taking good thing about the central bank's particular offer.
Bangladesh Bank has allowed the banks to create funds of Tk 200 crore by borrowing from the central lender for about five years in a minimal interest rate.
The funds of Tk 200 crore wouldn't normally be accounted available in the market exposure, meaning the limit on banks' investment in the market, based on the banking regulator.
ML Dyeing topped the gainers' list with a 10 % gain accompanied by GQ Ball Pen Industries, Zeal Bangla, Hwa Good Textile and It again Consultants.
