Pharma stocks lure investors to market

Investors showed strong buying appetite in pharmaceutical stocks during the recent rally, eyeing their fundamental growth story. 

The sector contributed a lion's share of the total turnover since February 9.

Investors are seen leaning towards the pharmaceutical stocks in the recent rally of the stock market, echoed several brokers.

"In the recent past, the stock price movement of the pharmaceuticals sector was not in line with the growth of its companies. Despite the pharma companies posted growths in their earnings, stock prices were falling, which was fundamentally illogical," said Asif Khan, CFA, managing partner of EDGE Research and Consulting Ltd.

He added, "Now that the market has recovered, this large-cap sector became the favourite of the investors, and its stock prices have posted growth."

On average, the sector stocks contributed to roughly one fifth of the total turnover, showed several market commentaries of stock brokerages.

On February 9 this year, the sector contributed 19.4 percent to the total turnover, and 18.4 percent on the next day, then 16.3 percent, followed by 21.5 percent, then 14.6 percent and finally 13.7 percent on Sunday. 

A total of 32 companies are listed in the pharmaceuticals and chemicals sector with the Dhaka Stock Exchange, of which 30 advanced, while two declined during the last five trading sessions.

Among the 32 companies, the top five gainers are Orion Pharma Ltd with 49.8 percent, Orion Infusion Ltd with 39 percent, Far Chemical Industries Ltd with 33.3 percent, Global Heavy Chemicals Ltd with 24.2 percent and AFC Agro Biotech Ltd with 23.1 percent. 

On the other hand, the two companies with losses are Imam Button Industries Ltd shedding 2.6 percent and Wata Chemicals Ltd losing 2.2 percent.