Drugmakers fuel Dhaka stocks’ momentum

Dhaka stocks yesterday maintained last week's gaining momentum riding on the rising demand for stocks of drug makers amid the Covid-19 pandemic.

The DSEX, the benchmark index of Dhaka Stock Exchange, rose 37.85 points, or around 1 per cent to stand at 4,099.42.

Some people went on a buying spree as the prices of many stocks have gone down to a very low level at a time when the government gave the go-ahead to the investment of untaxed money in the stock market, said a top official of a brokerage house.

Some banks formed funds to invest in the lucrative stock market but they are yet to start making purchases, he said.

The investors are now choosing the pharmaceutical and information technology sector stocks as these sectors remained almost unhurt when the coronavirus pandemic has been destroying others, he added.

The most traded company was Beximco Pharmaceuticals that exchanged shares worth Tk 17.53 crore, followed by Bangladesh Submarine Cables, Square Pharmaceuticals, Beacon Pharmaceuticals and ML Dyeing, according to the DSE data.

Of the total 32 listed pharmaceuticals companies, 18 rose, 8 declined and 6 remained unchanged.

Some big investors are pouring money into the market to take benefit of the lower prices, said a merchant banker.

"Banks are yet to invest here. The market would be more vibrant if they start buying as they have a huge amount of funds," he said.

Some 14 banks formed a fund of Tk 1,650 crore to invest into the stock market by taking advantage of the central bank's special offer.

Bangladesh Bank has allowed the banks to form funds of Tk 200 crore by borrowing from the central bank for around five years at a low interest rate.

The funds of Tk 200 crore would not be accounted in the market exposure, meaning the limit on banks' investment in the market, according to the banking regulator.

ML Dyeing topped the gainers' list with a 10 per cent gain followed by GQ Ball Pen Industries, Zeal Bangla, Hwa Well Textile and IT Consultants.