Daily Market Commentary

DSE Market Commentary @ September 7, 2021.

  • Welcome to the trading at Dhaka Stock Exchange (DSE) which has begun today on Tuesday, September 7, 2021.
  • Today trading started at DSE with upwnward 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 Beximco Green-Sukuk Al Istisna, the first-ever asset-backed securities by a private sector entity in Bangladesh. Subscription dates for eligible investors have extended to 30 September for the second time.
  • The electronic subscription system, its subscription started on 16 August and continued till 23 August. But due to the lower subscription than the allotment for Initial Public Offering (IPO), the time for subscription has been extended to 6 September first time.
  • But even after the extended time, the Sukuk is under subscription. So, the Bangladesh Securities and Exchange Commission (BSEC) extended the time again.
  • Earlier, the BSEC allowed Bangladesh Export Import Company Limited to interchange Sukuk subscription amounts between IPO and private placement if any of them remains undersubscribed.
  • According to its information, a 25% or Taka 750 crore of the green Sukuk was allotted for public offerings among the eligible investors (EI) and the general public (GP).
  • Up to 6 September, 72 bidders bid to get Sukuk units, which had cumulative value of Tk55.71 crore.
  • On 23 July, Beximco Ltd had secured approval from Bangladesh Securities and Exchange Commission (BSEC) to issue the Tk3000 crore securities.
  • Half of the Sukuk was allotted for private placement and the rest 25% was reserved for Beximco’s existing shareholders who were holding the company shares on 19 July. They are entitled to subscribe.
  • An investor will have to subscribe to one or multiple lots of 50 units of the Sukuk having a face value of Tk100 each.
  • Beximco Limited would expand its textile unit alongside implementing two solar power projects under its power division with the Sukuk money.
  • Investment Corporation of Bangladesh is the trustee of the Sukuk, while City Bank Capital Resources Ltd and Agrani Equity and Investment Ltd are jointly working as issue managers.
  • The regulator is also going to set new criteria for selecting eligible investors for initial public offering subscriptions. The new condition, which is yet to get the commission’s approval, is that every BO account needs to invest at least Tk50,000 in the secondary market instead of Tk20,000.
  • The Dhaka Stock Exchange (DSE) and the SME Foundation have signed a memorandum of understanding (MoU) to create the opportunity to list small capital companies in the SME platform of the stock exchanges.
  • Listing may solve SME fund crisis said by SME Foundation chairman. The SME sector gets Taka 180,000 crore bank loans against a demand of around Taka 540,000 crore.
  • BSEC brings changes in IPO application process yet again after just 5 months.
  • Experts have said considering the overall aspect, the subscription for IPO application has been fixed at Taka 10,000.
  • The Bangladesh Securities and Exchange Commission (BSEC) has brought some changes in the Initial Public Offering (IPO) allotment process in the wake of criticism for the recently introduced changes in April.
  • Commencement & Closure of electronic subscription of Oryza Agro Industries Limited through electronic subscription system under Qualified Investor Offer (QIO) has been revised.
  • The subscription for shares of Oryza Agro Industries Limited by the qualified investors through electronic subscription system under fixed price method of the stock exchanges through Qualified Investor Offer (QIO) will be started from 10:00 a.m. of September 5, 2021 and continued till 5:30 p.m. of Sept. 9, 2021 (round the clock).
  • Observers are now worried to see abnormal share price hikes of most poorly performing low-cap listed companies in the Bangladesh stock market over the recent months.
  • Of the 30 stocks gained most in the Dhaka Stock Exchange (DSE) over the last one month, 22 companies are the struggling ones, which have been suffering production halt or hiccups and financial devastation over years.
  • Many of the shares with devastated fundamentals gained by even 5 times in the last one year.
  • In the bourses, the popularly called junk stocks are significantly beating their industry peers who are in regular business operation, posting profits and giving dividends to their shareholders.
  • Today market started with a Strong And Sharp upward movement at very first minute to cross the record of 7,100 points mark of DSEX.
  • At 10:01 AM DSEX reached to 7100.5 points.
  • Market continued with uptrend and by 11:00 AM DSEX reached to 7150.84 points.
  • Market moved sidewise for next one hour with some small dips and by 12:00 Pm, DSEX was at 7147.97 points.
  • Market continued to move with similar pattern for even the next one hour and by 1:00 PM DSEX was at 7147.71 points.
  • After that, market experienced some sidewise downtrend for around next one hour and by 2:00 PM 7133.97 points.
  • After 2:05 PM when DSEX was at 7131.52 points,  market bounced back  and DSEX reached to 7149.37 points by 2:29 PM.
  • Now 2:45 PM, after Post-Closing session, at the end of today’s (Tuesday, September 7, 2021) trading, DSEX, the key index of DSE, charged up 65.38148 points or +0.92406% to end 7140.87406 points on the bourse today.
  • At the end of today’s trading, Market Turnover has decreased and closed over Taka 2,800 crore range (Taka 28,661.698 mn). It has decreased by over Taka 35 crore (Taka 353.566 mn) ,  -1.21855% from previous day’s turnover of Taka  29,015.264 mn.
  • Today a total of 374 company’s shares were traded. Among which prices have increased for 177 companies, prices have decreased for 167 companies and 30 companies have seen its prices remained unchanged.
  • Today’s SECTORwise trading at DSE have seen again ENGINEERING sector topped today’s market share followed by TEXTILE sector.
  • BEXIMCO has topped the list for highest traded shares in terms of total traded value of Taka  1,323.4270 mn followed by BATBC (Taka 1,224.1620 mn) and SUMITPOWER (Taka 754.4760 mn).
  • TAMIJTEX has topped the list of most % price change with 9.941% price increase followed by SAMATALETH (9.926%), KPCL (9.908%), DOMINAGE (9.483%), FASFIN (9.434%), ILFSL (8.911%), ENVOYTEX (8.906%) price increases.
  • Equity indices of the Dhaka Stock Exchange continued to scale new record highs while in-line earnings growth of listed companies and positive regulatory stances also lifted investors’ participation on the trading bourse.
  • 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 5,800 bn.
  • As the central bank has strengthened its monitoring of banks’ investments in stocks due to the recent rise, it may disseminate panic among investors causing a clutch in the dominant rally.
  • BATBC, the large capitalized stock observed stellar performance that helps the market to ascend further.
  • Indices of both stock exchanges jumped and reached a new apex in the first one and half hour trading session on Tuesday amid criticism questioning overvaluation.

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

Till  then  Good  Bye. Thank You.

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