The stock market rose yesterday riding on the blue-chip stocks and multinational companies.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 31 points, or 0.62 per cent, to 5,126.43.
Stocks of most of the multinational companies rose more than 4 per cent thanks to higher demand from institutional investors ahead of dividend declarations.
Of the 12 multinationals listed with the DSE, seven witnessed a rise of over 4 per cent and three by 1 to 2 per cent. The remaining two saw no change.
Several banks and non-bank financial institutions are increasing their investments in the stock market as their lending business is not in their usual shape, said Khairul Bashar Abu Taher Mohammed, CEO of MTB Capital.
Most of their investment is in the multinational and blue-chip stocks, indicating that they were cautious about their investment this time around.
On the other hand, December marks the end of the year for most multinationals, and they will declare a dividend soon, said Taher, also a former secretary-general of the Bangladesh Merchant Bankers Association.
Among the multinationals, HeidelbergCement rose 7.23 per cent, Berger Paints was up 5.33 per cent, and Unilever advanced 5 per cent.
GlaxoSmithKline Bangladesh was recently renamed Unilever Consumer Care following the purchase of 82 per cent of its shares by Unilever Group.
Institutional investors are expecting handsome dividends this year despite the scourge of the pandemic, said a top official of LankaBangla Securities.
Most multinationals maintain financial reports based on the calendar year, so the time for them to declare dividends is closing in, he said.
This prompted many institutional investors to pour money to avail the stocks of the companies that have always paid good dividends, he added.
Multinationals in Bangladesh are still lucrative considering their earnings and potentials, so investors are buying their stocks, said Syed Adnan Huda, vice-president of UCB Capital Management.
The investment in these stocks comes typically from institutional investors, not general investors, he added.
A top official of IDLC Securities said there was nothing to be apprehensive about the sudden rise of the multinational stocks because these were held by institutional and foreign investors.
“Normally, they will not be gambled with,” he said.
Sunday was a weekend abroad so foreign investors did not make the purchases, he added.
Turnover, another important indicator of the stock market, amounted to Tk 1,003 crore yesterday, up from Tk 936 crore a session ago.
Maksons Spinning Mills topped the gainers’ list rising 10 per cent followed by Dominage Steel Building Systems, MI Cement Factory, Alif Industries, and IFIC Bank.
IFIC Bank’s stocks were traded the most, amounting to Tk 67.27 crore, followed by Beximco Pharmaceuticals, Beximco, Rupali Insurance Company, and Fortune Shoes.
Of the 354 companies to witness trade, stocks of 141 advanced, 153 declined, and 62 remained unchanged.
Keya Cosmetics shed the most, 10.29 per cent, followed by Esquire Knit Composite, Bangladesh National Insurance Company, Nitol Insurance Company, and Vanguard AML Rupali Bank Balanced Fund.
