DSE turnover plunges from record high

Turnover at the Dhaka Stock Exchange plunged by 38 per cent or Tk 969 crore to Tk 1,577 crore yesterday thanks to the wait-and-see approach adopted by institutional investors, according to market players.

The development comes just a day after turnover registered a decade high at Tk 2,546 crore.

However, DSEX, the benchmark index of the Dhaka bourse, rose 30 points, or 0.54 per cent, to 5,640 at the same time.

Some of the institutional investors have taken profits considering some corrections but the others are waiting for a further rise, according to a merchant banker.

As interest rates in the banking sector have fallen, new funds are being diverted to the stock market, he added.

Now, if state-run companies can offload their shares and bonds in the secondary market, the stocks will not be overvalued.

If the investors pour money into overvalued stocks, then the market will become bearish again.

"So, investors also need to be cautious," the merchant banker said.

Among the major sectors, the non-banking financial institution, cement and telecommunication advanced while the general insurance, mutual fund and engineering sectors faced corrections.

AFC Agro Biotech topped the gainers' list with a 9.94 per cent rise followed by Robi Axiata, Fu-Wang Ceramic, GBB Power and Khan Brothers PP Woven Bag.

Green Delta Mutual Fund shed the most, falling 8.51 per cent, followed by Nitol Insurance, Peoples Insurance, Alltex Industries, and Takaful Islami Insurance.

Beximco topped the turnover list with Tk 153 crore followed by Beximco Pharmaceuticals, LankaBangla Finance, Robi Axiata and IFIC Bank.

At the DSE, 120 securities gained value, 171 declined, and 70 remained unchanged.

The port city bourse also rose yesterday. CASPI, the general index of the Chattogram stock exchange, rose 38 points, or 0.23 per cent, to 16,294.

Among the 269 traded companies, 95 advanced, 134 fell and 40 remained the same.