Stocks witness a big jump amid lockdown

Staff Correspondent

6 July, 2021 12:00 AM printer

Stocks witness a big jump amid lockdown

The market witnessed a sharp rise at opening on Monday as stocks trading resumed after a four-day break amid countrywide strict lockdown.

This is the first session in the new fiscal year and trading will remain open for three hours --10:00 am to 1:00 pm --in line with the banks during the government-enforced stricter lockdown.

Following the last session’s steep rise, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 71.05 points or 1.15 per cent to reach 6,221 within the first 30 minutes of trading when the report was filed at 10:30 am.

The market index holds its firm position at above 6,000 points marks as buying support added strength to the equity indices despite worries over the virus-infused shock to the country’s economy.

Market experts said the investors are hopeful about the market as the government has kept the undisclosed money investment opportunity in the capital market in the new fiscal year and regulatory decision to keep the market open during the lockdown.

Removal of the floor price restriction from all listed securities, lower returns from the money market and several regulatory reforms to build a vibrant capital market kept the market afloat, said a merchant banker.

Two other indices saw an upward trend till then with the DS30 index, comprising blue chips, gained 11.10 points to reach 2,219 and the Shariah Index (DSES) rose 10.23 points to stand at 1,324 points till then.

Turnover, another important indicator of the market, stood at Tk 3.04 billion within the first 30 minutes of trading at 10:30 am.

Of the issues traded till then, 279 advanced, 47 declined and 29 remained unchanged on the DSE trading floor till then.

Low-cap companies dominated the turnover board with Sandhani Life Insurance was the most traded stock till then with shares worth Tk 146 million changing hands, closely followed by National Feed Mills, ML Dyeing, Keya Cosmetics, and Makson Spinning Mills.

The port city bourse – the Chittagong Stock Exchange – (CSE) also opened sharply higher with CSE All Share Price Index- CASPI-gaining 118 points to stand at 17,913, also at 10:30 am.

Of the issues traded till then 32 advanced, 4 declined and 2 remained unchanged with Tk 17 million in turnover.