Stock turnover hits 4-month high
Stock market yesterday witnessed the highest turnover in four months, crossing Tk 1,500 crore, thanks to increased participation of institutional investors prompted by a continuous rise of the index.
The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), surged 26.9 points, or 0.46 per cent, to stand at 5,840 yesterday.
It was a rise for the eighth consecutive day. During the period, the index advanced 329 points, or around 6 per cent.
Turnover, another important indicator of the stock market, rose 8 per cent to Tk 1,534 crore yesterday.
In the country's stock market, when the index starts to rise, it continues to do so and there is an opposite trend too, so when the index falls then it continues to do so, said Shahidul Islam, CEO of VIPB Asset Management Company.
This is a common scenario in this market, he said.
The important thing is that some scripts have been rising for the last few days at a stretch, he said, adding that general investors should be cautious in investing in these stocks.
They should invest only after analysing a company's potential and prices, Islam added.
At the DSE, 142 companies' stocks rose while that of 175 fell and 48 remained the same.
Asia Insurance topped the gainers' list, rising 9.92 per cent followed by Meghna Condensed Milk Industries, GQ Ball Pen Industries, Prime Bank and NRB Commercial Bank.
Beximco's stocks traded the most, worth Tk 113 crore, followed by Robi Axiata, SAIF Powertec, Prime Bank and IFIC Bank.
Malek Spinning shed the most, dropping 4.32 per cent, followed by Emerald Oil Industries, eGeneration, Mercantile Insurance Company and Islami Insurance Bangladesh.
One stock broker stated that some high net worth investors were taking part in the stock market.
They had a huge amount of funds lying idle as the bank interest rate was now unattractive, he said.
People are preferring investing in the stock market rather than keeping money in banks so the funds were flowing in this direction, he added.
The country's market is lucrative for investment but there are many stocks that are overvalued, so investors need to be careful before going for investments, he said.
If people can invest considering the potential of listed companies and what their logical price would be, then they will not face any bad impact, he said.
Chittagong Stock Exchange (CSE) also rose yesterday. The CASPI, the general index of the port city bourse, advanced 73 points, or 0.43 per cent, to stand at 16,922.
Among 300 stocks to witness trade, 125 rose, 146 fell and 29 remained unchanged, shows the CSE data.