Floor price removal takes Dhaka stocks to new high

Dhaka stocks rose to a three-and-a-half-year high yesterday as institutional investors received a boost following the complete withdrawal of the floor price for all companies by the regulator.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), was up 56 points, or 0.92 per cent, to 6,125, the highest since January 30, 2018.

"Participation of institutional investors increased after the removal of the floor prices," said a top official of an asset management company.

In April, the Bangladesh Securities and Exchange Commission removed the floor price for 66 companies to see the market's reaction. The full withdrawal came on Sunday.

The commission imposed the floor limit on March 19 last year to stop any stock freefall after the coronavirus pandemic struck the country.

"Now, institutional investors are keen to pour money in the stocks that are still lucrative," the asset manager said.

Yesterday, British American Tobacco Bangladesh had the highest impact on the market, and its contribution to the key index was 10.36 points. It was followed by Walton Hi-tech Industries, Robi Axiata, Beacon Pharmaceuticals, Grameenphone, and Marico, showed data from amarstock.com, a web portal.

On the DSE, 224 stocks rose, 119 declined, and 29 remained unchanged.

Turnover, an important indicator of the market, went up 11 per cent to Tk 2,043 crore.

Tamijuddin Textile topped the gainers' list after advancing 10 per cent, followed by Paper Processing & Packaging, Bangladesh Monospool Paper Manufacturing, Alif Industries, and Intraco Refueling.

Beximco Ltd topped the turnover list with its shares worth Tk 111 crore changing hands, followed by Malek Spinning, National Feed Mills, Maksons Spinning, and Fortune Shoes.

Sea Pearl Beach Resort & Hotel gave up the most, sliding 9.9 per cent. Index Agro, Sonali Paper, Dacca Dyeing, and United Insurance also saw major losses.

The port city bourse also soared on the day.

The CASPI, the general index of the Chattogram Stock Exchange, rose 178 points to 17,762.

Among the 309 traded stocks, 195 advanced, 96 dropped, and 18 ended the day unchanged.