Stocks up before 10 days general holiday
Today, the DSE observes 70 gainers, 25 losers while prices of 238 scrips are still unchanged
Dhaka and Chattogram stocks are trading higher in the last session before a 10 day general holiday is imposed in a nationwide step to tackle coronavirus.
DSEX, the broad-based benchmark at the Dhaka Stock Exchange (DSE), is 0.35 percent up – at 3,990 points – until 12:30 pm.
During the first two-thirds of the session, turnover at the premier bourse has crossed Tk 60 crore, which was over Tk 139 crore on Tuesday that had observed the key index 0.2 percent down.
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Today, the DSE observes 70 gainers, 25 losers while prices of 238 scrips are still unchanged.
Besides regular investment activities, banks are moderately participating in buying selective stocks near floor price for long term holding, informed market sources.
On last Thursday, the securities regulator had put a floor on price of individual securities saying no price can go below the five day average of closing prices until March 18.
After a sharp fall over the prior five sessions, the floor—bottom of circuit breaker—has pushed most of the securities prices up, over one-fourth in many cases.
The suddenly increased price have resulted a slower pace in trading as buying appetite is reduced.
However, a number of investors are getting accustomed with the existing floor and also expecting a support.
In February, the central bank allowed each commercial banks to build a special investment fund up to Tk 200 crore for five years to increase demand beyond their regular market exposure.
Banking industry leaders in a meeting with the finance minister declared to begin buying stocks gradually that might help the market to retain its current price level.
DSEX fell more than one-fourth in 2018 and 2019.
This year the index is going through extreme volatility because of export slowdown, concern about banking sector health, and a turbulent money market.
Coronavirus outbreak added to all the existing worries and triggered a free fall in recent weeks.
DSEX had suffered a 20 percent fall in March alone until 18th of the month, but later recovered partially with a 10 percent gain due to the new floor prices.
At CSE, major indices are up more than 0.25 percent with an increased pace in turnover.
