DSE turnover surges past Tk 2,000cr
Trading at the Dhaka Stock Exchange (DSE) yesterday crossed Tk 2,000 crore for the first time in 11 months thanks to higher participation from general investors, according to market analysts.
The DSEX, the benchmark index of the Dhaka bourse, rose by 46 points, or 0.75 per cent, to close the day at 6,401.
Turnover of the DSE, a key indicator of the market's health, surged 18 per cent to Tk 2,105 crore, which is the highest since the Tk 2,497 crore registered on October 7, 2021.
Of the securities listed with the bourse, 219 advanced, 102 declined and 61 did not show any price movement.
Bargain hunters put fresh bets on sector-wise issues as they are regaining their confidence on the currently bullish market, International Leasing Securities said in its daily market review.
The investors' attitude has become positive again thanks to different measures taken by the central bank that gradually brought stability to the exchange rate while ongoing discussions regarding fuel imports from cheaper sources has also helped, it added.
The market index is rising mainly due to the increased participation of general investors but institutional investors are still not in a buying mood, said a top official of a merchant bank preferring anonymity.
"As the concerns over macroeconomic indicators have not faded, we cannot take the decision to buy shares."
Besides, the recent hike in raw material prices is expected to impact the performance of listed companies, but this is yet to happen.
"So, institutional investors are waiting to see the situation," he added.
On the other hand, general investors are optimistic as the recently reintroduced floor price mechanism gives them confidence that the stocks cannot fall under a certain limit.
The Bangladesh Securities and Exchange Commission (BSEC) set a floor price for every stock last month in a bid to halt the freefall of market indices amid global economic uncertainties that impacted Bangladesh's economic indicators over the last couple of months.
The floor price will be the average of the closing prices on July 28 of this year and the preceding four days.
All the sectors achieved price appreciation yesterday, sans cement and pharmaceuticals, with general insurance rising 3.2 per cent, services 3 per cent, and paper 2.7 per cent.
Investor activity was mostly focused on the textile (17.5 per cent), pharmaceuticals (12.6 per cent) and engineering (11.2 per cent) sectors.
Stocks of Coppertech Industries made the biggest climb with a 9.97 per cent increase while that of Ratanpur Steel-Rerolling Mills rose 9.95 per cent, and Malek Spinning Mills advanced 9.86 per cent. Other major gainers included Bashundhara Paper Mills, and Metro Spinning Mills.
Sonargaon Textiles shed the most, eroding 9.50 per cent, while Union Capital, Paper Processing & Packaging, Sunlife Insurance, and Beacon Pharmaceuticals were also among the major losers.
Orion Pharmaceuticals was the most-traded stock with shares worth Tk 114 crore changing hands. Meanwhile, Beximco Ltd, Fortune Shoes, Malek Spinning Mills, and Delta Life Insurance witnessed significant turnover as well.
Stocks listed with the port city bourse also increased yesterday.
The CASPI, the all-share price index of the Chattogram Stock Exchange, ballooned by 180 points, or 0.96 per cent, to close at 18,823.
Gainers outnumbered losers with 191 stocks having advanced while 66 retreated and 56 stayed in place.