DSE turnover hits decade high

Dhaka Stock Exchange (DSE) registered a turnover of Tk 2,939 crore yesterday, its second single-day highest following the record Tk 3,249 crore of December 5, 2010.

The important market indicator soared 17 per cent compared to that of the previous day at the country's premier bourse to reach its highest point in a decade.

"The interest rates offered by banks are very low and so, savers are heading towards the stock market," said a top official of a brokerage firm.

Besides, since the banking sector has a huge amount of excess liquidity, lenders are pouring funds into equities while rising confidence in the market also played a part.

"So, market turnover soared," he added.

The DSEX, the benchmark index of the DSE, continued its surge of the last six trading days to rise by 32 points, or 0.48 per cent, to 6,628 yesterday.

The DS-30, the blue chip stock index, soared 6 points to 2,392 at the same time. The Shariah index of the premier bourse, DSES, rose 12 points to 1,452. This is the highest point to be reached by all three indexes since their inception in 2013.

Square Pharmaceuticals and United Power Generation jointly contributed 19 points to the index.

"Many entrepreneurs are also now active in the stock market as their own businesses are going quite slow amid the pandemic," said a merchant banker.

Seasonal investors have come to the market as well while some investors whose funds were tied up in stocks before the 2017 peak or earlier have also returned to profits.

"So, they are also trading in the market," he said, adding that if investors invest in companies with good performance records, then their investment would not end up in losses.

However, many stocks with low performance records surged abnormally despite announcements from the companies concerned that they have no undisclosed information.

"So, investors should be cautious about these stocks," said the merchant banker.

At the DSE, 181 stocks advanced, 173 declined and 20 remained unchanged.

VFS Thread Dyeing topped the gainers' list, rising 10 per cent, followed by Acme Laboratories, Monno Ceramic Industries, Alhaj Textile Mills and Legacy Footwear.

Stock of Beximco were traded the most, worth Tk 152 crore, followed by Orion Pharma, IFIC Bank, National Polymer Industries and GPH Ispat.

Northern General Insurance Company shed the most, falling 6.46 per cent, followed by Fu-Wang Ceramic Industry, eGeneration, and SEML FBLSL Growth Fund.

The port city bourse also rose yesterday. The CASPI, the general index of Chittagong Stock Exchange, advanced 101 points, or 0.52 per cent, to 19,289.

Among 321 stocks to undergo trade, 157 advanced, 144 dropped, and 20 remained unchanged.