Daily Market Commentary

DSE Market Commentary @ September 2, 2021.

  • Welcome to the trading at Dhaka Stock Exchange (DSE) which has begun today on Thursday, September 2, 2021.
  • Today trading started at DSE with strong upward movement at the beginning.
  • At DSE, trading has been ongoing with the following trading period: Pre-Opening Session from 9:45 AM to 10:00 AM, Continuous Session from 10:00 AM to 2:30 PM and Post-Closing Session from 2:30 PM to 2:45 PM.
  • The stock market regulator increased quota for general investors in initial public offering (IPO) to 70 per cent, up from 60 per cent earlier.
  • Rest 20 per cent will be entitled to institutional investors, 5 per cent for mutual funds and 5 per cent for non-resident Bangladeshis.
  • The change was brought in the amendment of the public issue rules and a gazette was published today in the website of Bangladesh Securities and Exchange Commission.
  • The amendments were brought to allow general investors to get more shares in the IPOs.
  • If a company comes to the stock market, it is bound to offload at least 10 per cent shares, according to the amendments.
  • JAMUNAOIL has informed that for the expansion of business, the Company has signed an agreement with BEXIMCO LPG (Unit-1) Limited, to sale LPG (Auto gas) by establishing LPG (Auto gas) Refueling Station parallel to the sale of Petroleum Oil through Company’s registered Filling Stations.
  • As per the agreement, the Company will receive royalty/commission of Tk. 0.50 against per Liter sale of LPG (Auto gas).
  • DACCADYE will be placed in ‘B’ category from existing ‘Z’ category with effect from today i.e. September 02, 2021 as the Company has reported disbursement of 1% cash dividend for the year ended on June 30, 2020.
  • Referring to the earlier news disseminated on 18.08.2021 regarding Suspension of trading of the shares of BXSYNTH as per BSEC Directive, the trading of the shares has been further suspended for 15 days effective from September 03, 2021 as per BSEC Directive No. BSEC/SRMIC/174-2020/52 dated September 07, 2020 under Section 9(7) of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of 1969) subject to the compliance of Section 9(8) of this Ordinance.
  • Garment exporters have been feeling the pinch of an unusual rise in the cost of production fuelled by hikes in yarn prices and freight charges in the wake of a recovery in export during this time of Covid-19.
  • Entrepreneurs said the cost per unit soared by as much as 30 per cent from that a year ago as Bangladesh was fully dependent on imported goods for making readymade garments (RMG).
  • Cotton prices have climbed to 93 cents per pound in international futures markets. Prices varied between 70 cents and 74 cents per pound even in January and March.
  • Higher cotton prices pushed up yarn prices in local markets. With yarn prices affecting profitability of the garment sector, garment exporters and spinners are engaged in a war of words.
  • Finally last week, the widely consumed 30 carded cotton-made yarn was fixed at $4.20 per kilogramme (kg) in consultation with garment manufacturers and spinners. It was decided that spinners would increase yarn prices if cotton prices crossed $1 per pound in international markets and go for a reduction if it went below 85 cents.
  • Remittance inflow declined 8 per cent year-on-year in August to $1.8 billion, the lowest in the past six months, as money transfers through informal channels such as “hundi ” have increased, according to various experts.
  • The stock market regulator BSEC has allowed Nagad, the mobile financial services arm of the Bangladesh Postal Department, to raise Taka 510 crore through issuing zero-coupon bonds on condition that it would fulfil all regulatory requirements.
  • The company will have to submit its trust deed registration, Credit Information Bureau (CIB) clearance of all directors and no objection certificate from its regulator.
  • The company does not comply with securities rules for raising funds through issuing zero-coupon bonds as the company is in a huge loss.
  • Moreover, the company will require an operational licence from the Bangladesh Bank to raise funds, added sources.
  • Today market started with a sharp upward movement at beginning and by 10:10 AM DSEX reached to 6954.44 points
  • Marked continued to move sidewise and by 11:00 AM DSEX was at 6953.99 points.
  • Market remained positive and by 12:00 PM DSEX reached at 6957.41 points.
  • Market experienced some dips but by 1:00 PM DSEX reached to 6960.52 points.
  • After 1:35 Pm  when DSEX was at 6960.73 points, market started to go upward and by 2:00 PM DSEX reached 6970.13 points and by at 2:29 PM DSEX reached to 6991.67 points.
  • Now 2:45 PM, after Post-Closing session, at the end of today’s (Tuesday, August 31, 2021) trading, DSEX, the key index of DSE, charged up by 64.66876 points or +0.93501% to end at the new high of 6981.05847 points on the bourse today.
  • At the end of today’s trading, Market Turnover has increased and closed over Taka 2,400 crore range (Taka 24,743.004 mn). It has increased by over Taka 107 crore (Taka 1,079.375 mn) , +4.56132% from previous day’s turnover of Taka  23,663.629 mn.
  • Today a total of 373 company’s shares were traded. Among which prices have increased for 237 companies, prices have decreased for 105 companies and 31 companies have seen its prices remained unchanged.
  • Today’s SECTORwise trading at DSE have seen again INSURANCE sector topped today’s market share followed by ENGINEERING sector.
  • BEXIMCO has topped the list for highest traded shares in terms of total traded value of Taka  1,532.9030 mn followed by BNICL (Taka 591.3130 mn) and BXPHARMA  (Taka 445.4660 mn).
  • TAMIJTEX has topped the list of most % price change with 9.982% price increase followed by SAMATALETH (9.978), ACTIVEFINE (9.957%), PREMIERCEM (9.903%) price increases.
  • Dhaka Stock Exchange depicted stellar performance as buying rush from buoyant investors in major stocks fueled the bull-run while DSEX, the key index of DSE, charged up today.
  • The market capitalization of the Dhaka bourse has stood at the historically highest level of BDT 5,637 bn.
  • The bullish trend from the beginning of the session persisted till the closure as investors engaged in buying bonanza with an anticipation that the market may cross the threshold of 7,000-points soon.
  • The latest regulatory measure to increase the IPO quota for general investors has impacted the investor’s sentiment positively and the positive move will encourage market participation in the bourse ahead.
  • Most of the sectors exerted positive returns, on the sectoral front, General Insurance (14.38%), Engineering (12.74%), and Pharmaceuticals & Chemicals (9.45%) issues were the most traded stocks on today’s trading board.
  • Investors’ participation was agile on the bourse and the total turnover has significantly advanced by 4.56% and stood at BDT 24.74bn.

That’s  all  from  today’s market. See you on the next day.

Till  then  Good  Bye. Thank You.

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