A file photo shows a man looking at a computer screen displaying stock prices at a brokerage house in Dhaka on Monday. – Photo New Age
Dhaka shares edged up on Wednesday despite a drop in the stock prices of most companies, with some investors opting to buy shares of insurance companies while many others made profits after the recent market gain.
DSEX, the key index of the Dhaka Stock Exchange, rose 0.11%, or 7.31 points, to close at 6,273.33 points on Wednesday after gaining 57.62 points in the previous session.
Wednesday’s index was the highest after January 4, 2018, when it stood at 6,302.84 points.
After rising sharply at the start of Wednesday’s session, the benchmark fell and ended the session flat, with investors active on both sides of the trade barrier, traders said.
They said a portion of investors continued to buy stocks following the market’s record surge.
Some investors rushed to buy shares of insurance companies again, which saved the market from a slump on Wednesday, they said.
Average share prices in the P&C, life insurance and pharmaceuticals sectors rose 2 percent, 0.6 percent and 0.2 percent, respectively.
Investors continued to buy shares following a decision to ease Covid’s restrictions, market operators said.
The Bangladesh government on Tuesday eased Covid restrictions on public travel and business for eight days, from July 14 at midnight to July 23 in the morning, for the celebration of Eid-ul-Azha and the continuation of business activities. and economic before Eid.
However, many investors took profits after the recent market gain before Eid-ul-Azha, one of the biggest religious holidays for Muslims.
Eid-ul-Azha will be celebrated on July 21 across the country.
EBL Securities, in its daily market commentary, said the main stock market index had peaked more than three and a half years despite pre-Eid selling pressure.
Some investors have flocked to the rumored junk stocks, he said.
Equity prices in the non-bank financial institutions, telecommunications, energy and banking sectors fell by 1.1 percent, 0.6 percent, 0.2 percent and 0.1 percent, respectively.
Among large capitalized companies, stock prices of IFIC Bank, Square Pharmaceuticals, Renata, British American Tobacco and Islami Bank rose on Wednesday.
IFIC Bank’s share prices soared the day after the bank’s decision to sell all of its shares held in Nepal Bangladesh Bank Limited.
The stock prices of many underperforming and fundamentally weak companies have continued to advance in recent days.
The stock prices of Familytex, Tung Hai Knitting & Dyeing, GQ Ball Pen Industries and Zeal Bangla Sugar Mills soared that day.
DSE revenue also fell to Tk 1,648.9 crore on Wednesday from Tk 1,668.51 crore in the previous session.
DS30, a composition of 30 large-cap companies, added 0.04%, or 0.94 points, to close at 2,274.7 points on Wednesday.
The DSES Sharia index, however, lost 0.07%, or 0.99 points, to stand at 1,353.09 points.
Of the 374 scripts traded on the DSE on Wednesday, 166 advanced, 174 declined and 33 remained unchanged.
BEXIMCO topped the turnover chart with shares valued at Tk 119.88 crore changing hands that day.
Paramount Textiles, IFIC Bank, Power Grid Bangladesh, Sonali Life Insurance, Beacon Pharmaceuticals, Shinepukur Ceramics, Active Fine Chemicals, Southeast Bank and Silco Pharmaceuticals were the other top revenue leaders for the day.