Stocks soar on shopping for spree
Stocks surged yesterday on the trunk of a investing in spree from retail traders.
The DSEX, the benchmark index of Dhaka STOCK MARKET, soared 32.83 points, or 0.82 %, to close at 4,034.65. This is the highest single-day rise since May 31 when the index rose 51 points.
"This is a substantial jump because a lot more than 100 stocks rose. It has happened for the very first time since the floor price was set," explained a top established of a merchant lender.
On March 19, the currency markets regulator set the ground value for all stocks predicated on the common prices of the prior five days in order to stop the expected rout caused all over the world by the coronavirus pandemic.
Needlessly to say, the index didn't fall due to the floor price. But it addittionally did not rise either as a result of lower demand.
Yesterday, the main element index rose riding on the news that directors, who've less than 2 % shares in a enterprise, would have to purchase shares to fulfil the minimum shareholding condition, the merchant banker said.
The Bangladesh Securities and Exchange Commission ordered the directors to get the shares the other day, otherwise, it could vacant their directorship.
So the companies, whose directors have didn't hold the minimum shares, attracted investors.
In 2011, the regulator ordered the directors to carry at least 2 % shares within their company to keep carefully the position. Janata Insurance and Paramount Insurance were among the very best gainers, advancing 10 % and 9.98 % respectively.
Banking and pharmaceuticals stocks also contributed to the surge of the marketplace. Some medicine-makers announced income and subsequently advanced, pulling traders.
The central bank's recent directive on easing foreign investment also created a positive impact, said a stockbroker.
Foreign investors will be permitted to park their dividend income from outlined companies in forex (FC) accounts opened with the country's banks plus they would be permitted to remit the funds with their home countries.
Investors would also get permitted to invest the total amount in the FC accounts to buy securities.
The move is aimed at retaining the existing foreign investors' funds and drawing more foreign investment in the times to come, said the broker.
"It would affect the market positively."
Stocks and shares traded the most found in the day was of Beximco Pharmaceuticals, whose securities involving Tk 17 crore changed hands, accompanied by Beacon Pharmaceuticals, Premier Lender and Orion Pharma.
On your day, 101 stocks advanced, 23 declined and 209 remained unchanged.
