Stocks pass dull month as investors remain glued to Robi IPO, new offerings

The stock market has passed a dull month in November as most of the investors were busy in mobilising funds to subscribe to Robi's initial public offering, the biggest of its kind in the history of Bangladesh.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), hovered around 4,928 to 4,817 points during the period, according to DSE data.

The same trend was seen in the port city bourse also: the benchmark index of the Chattogram Stock Exchange ranged between 8,536 to 8,427 points.

Apart from Robi, some other IPO subscriptions and bidding also took place last one month. As a result, investors' funds remained blocked, keeping the secondary market relatively dull, said a top official of an asset management company.

"The secondary market will become vibrant when the funds are free for use again, and it will happen soon."

The DSEX fell 14.97 points, or 0.30 per cent, to 4,866.84 yesterday.

Turnover, another important indicator, went down to the Tk 400-500 crore level in the last one month.

However, yesterday it started increasing again and rose 4.99 per cent from the previous day to hit Tk 804 crore. General investors are still active in the market, but institutional investors are not, said a stockbroker.

They are still waiting to see the impact of the pandemic on the performance of the listed companies, he said. An increase in the number of IPOs, on the other hand, was also responsible for the fall in turnover, he added.

Kohinoor Chemicals topped the gainers' list rising 10 per cent followed by Bangladesh Lamps, Padma Life Insurance, Sandhani Insurance, and Peninsula Chittagong.

Jute Spinners shed the most with a 9.65 per cent fall followed by Agni Systems, SEML IBBL Shariah Fund, and Reliance Insurance.

Beximco Pharmaceuticals topped the turnover list with shares worth Tk 52.9 crore changing hands, followed by Rupali Insurance, Beximco Ltd, Sandhani Insurance and Pragati Insurance.

On the DSE floor, 95 securities gained, 144 declined, and 110 remained unchanged.

The port city bourse's premier index, CSCX, dropped 26 points, or 0.30 per cent, to 8,427.