Record 8pc jump by a third of DSE stocks
A third of the stocks listed in the Dhaka STOCK MARKET (DSE) yesterday made a whopping leap greater than 8 per cent, a growth market analysts termed unprecedented for a single day.
Including these 110, stocks of a total of 354 companies were traded yesterday with around 90 very near the circuit breaker, in line with the DSE data.
The circuit breaker limits a day's movement of stock to 10 per cent. However, there is no limit on the movement on your day following the corporate declaration and the five days after getting listed for the very first time.
Investors' mindsets are buoyant about the stock market as a newly appointed commission of the stock market regulator has taken several steps to boost confidence, said a high official of a merchant bank.
Appointed in May, the brand new commission fined many gamblers and manipulators for breaching the securities rules. It also took steps to bring about a captivating bond market.
The commission also planned to reform junk stocks in order that they can either succeed or be punished for wrongdoings.
Along with these, the Bangladesh Bank's expansionary monetary policy is giving a boost to the buoyancy, that the stock index is going up.
DSEX, the benchmark index of the DSE, surged 156 points, or 3.3 % to 4,859 yesterday.
Several stocks rose to a higher value in a historic moment in mid-2010. But they did not soar at the rate witnessed at present, said the lender official.
"As almost all of the stocks were traded at their 2-3 3 year low, the rise isn't too risky," he said, adding that a number of the stocks that had risen by an abnormally high margin might grow to be risky.
Yesterday, mutual funds, banks, financial institutions and textile sectors experienced a higher jump in the DSE weighed against the prior day, while jute and life insurance coverage sectors saw some corrections.
The companies lagging in the race, like mutual funds, were now in the spotlight, said a high official of a secured asset management company.
As the stock index is rising, so is mutual funds' earnings, for which persons are buying their units, he said.
The asset manager also explained that he had not witnessed a growth greater than 8 per cent by one-third of listed companies in his 25 year-long career.
Turnover, among the major indicators of the currency markets, was up by about 12 % to Tk 1,351 crore.
Beximco Pharmaceuticals topped the turnover list, using its trade amounting to Tk 104 crore, followed by Beximco, Brac Bank, Square Pharmaceuticals and Sonar Bangla Insurance.
Sunlife Insurance gained the most at 14.61 % accompanied by PHP Mutual Fund, AB Bank, First Mutual Fund, Islami Insurance and Al-haj Textile.
