Robi, Beximco companies’ stocks fly high all week

Stocks of Robi Axiata and a few concerns of Beximco Group continued to dominate the market, capping off a week on top of the turnover and gainers' lists.

Ever since Robi Axiata made its trading debut on December 24, its share price has been rising every day.

And although Beximco, Beximco Pharmaceuticals, IFIC Bank and Shinepukur Ceramics, all concerns of the conglomerate, witnessed a few corrections, they have remained bullish for the past few months.

DSEX, the benchmark index of the Dhaka Stock Exchange, rose 287 points, or 5.11 per cent, over the previous week.

During this period, Robi rose 47 per cent, Beximco 33 per cent and Beximco Pharmaceuticals 12 per cent.

Beximco led the turnover list with an average daily turnover of Tk 162 crore while Robi came in second with Tk 116 crore and Beximco Pharmaceuticals third with Tk 107 crore.

Many investors believe that Robi has potential since it's a multinational telecom company, prompting them to buy the stock, said a senior official of an asset management company.

Meanwhile, a number of investors who got Robi's shares through its initial public offering have already sold their stakes, thinking that the huge profit they made from the recent rise in value is enough, he added.

However, the official urged investors to be careful when it comes to Robi since the company's earnings are low.

Robi's profit stood at Tk 38 crore while its earnings per share was Tk 0.08 in the July-September period.

"Robi will not become highly profitable overnight. Instead, it will take time so investors will have to wait to get a good dividend from the country's second largest mobile operator," the official added.

Apart from Robi, stocks of Beximco, Beximco Pharmaceuticals, IFIC Bank and Shinepukur Ceramics were also on top of the investors' demand list.

Beximco Pharma's shares have been on the rise since July riding on a rumour that whenever the coronavirus vaccine comes to the country, the leading drug maker will grab the business first, according to a stock broker preferring anonymity.

The rumour became a reality in November when Beximco signed a deal with the Serum Institute of India in this regard, he said, adding the deal drove investors wild.

On November 5, a trilateral memorandum of understanding was signed between the Bangladesh government, Serum Institute of India and Beximco Pharmaceuticals to collect three crore doses of Covid-19 vaccines from the Pune-based biotechnology and pharmaceutical company.

After the deal became official, Beximco Pharma's shares surged without correction, the stock broker said, adding that three of the group's other concerns -- Beximco, IFIC Bank and Shinepukur Ceramics -- also rose as a result.

"The pharma company has the potential to see higher earnings but investors need to consider the valuation of their potential," he added.

"Among the major economic issues, the real rate of return on deposits in the money market had turnover in the negative," LankaBangla Securities said in its weekly analysis.

Banks have been flooded with excess liquidity as well after having made a record Tk 1.95 lakh crore in November 2020, it added.

This year, the rally of the stock indices started with Beximco Group's stocks, a merchant banker said.

Somehow, the stocks rose and it influenced investors positively.

Although almost all stocks rose in the last few weeks, Robi and Beximco Group's concerns rose at a higher extent in comparison, the merchant banker added.