Robi lifts DSEX to 16-month high

Dhaka shares closed at record highs on Thursday backed by Robi's strongest debut on the Dhaka Stock Exchange, with the benchmark index scaling up fresh peaks for the first time in 16 months.

The DSEX added 85 points or 1.65 percent to settle at 5,218, which is its highest since August 25 when it was 5,223. The index also saw the biggest single-day rise in several years and gained for the third straight session in a row.

Shares of Robi, the largest IPO ever, were frozen at 50 percent upper circuit on the DSE. More than 1.17 lakh shares via 80 trades were changed hands at the halted price and more than 17 crore buyers were waiting to bet on the new stock, the DSE data showed.

The heavyweight debutant opened at Tk 15, 50 percent higher than the IPO price of Tk 10. The increase was capped by the regulatory limit for the stock.

Other indices, the DSES gained more than 17 points or 1.46 percent to 1,203 and blue-chip DS30 climbed 40 points or 2.2 percent to 1,876.

The turnover hit over Tk 1,405 crore—a level not seen before August 17, 2019, when it was Tk 1,408 crore—supported by general insurers, pharmaceuticals, banks, and engineering¸ which accounted for nearly half of the total turnover.

All the sectors glittered, driven by service and real estate that moved up almost 6 percent, followed by cement NBFI 4 percent, cement 4 percent, mutual funds 2.5 percent, and ceramics 2.1 percent. Life insurance sector was the only sector that edged lower in the day.

“The market was abuzz with Robi's debut, setting the positive tone for the trading,” said an analyst.

Robi made a strong debut despite the fact the second-largest mobile phone operator reported the earnings per share decreased in the year ended in June 2020 to Tk 28.45 from Tk. 35.11 in the same period a year earlier.

The market rallied as investors continued to shrug off a new strain of coronavirus. But some were still worried about the new vibrant of Covi-19 that could spread more rapidly, forcing some countries to cancel international flights and restrict movements, according to brokers.

Beximco—the flagship company of Beximco Group—was the most traded stock with shares worth Tk 96 crore changed hands. It was followed by IFIC Bank and Beximco Pharmaceuticals.

The three companies of the same group dominated the trading for a long since the news that Beximco will import doses of the coronavirus vaccine from abroad.

Envoy Textile was the worst performer falling over 4 percent as the company remained under pressure since it reported first-quarter negative earnings.