The stock market turnover went well over Tk 2,500 crore yesterday, which was encouraging for investors.
This important indicator of the stock market dropped just 1 per cent from the day before to Tk 2,669 crore at the Dhaka Stock Exchange (DSE)
Investors' increased participation has led to this high turnover, giving a boost to confidence, said a top official of a merchant bank. Although the market started off with a rise at a very high pace, it dropped as insurance stocks fell by a big margin, he said.
The DSEX, the DSE's benchmark index, rose 11 points, or 0.19 per cent, to 6,066.64 yesterday.
Within the first hour, the rise was over 70 points, showed DSE data.
As the insurance sector had been experiencing a rising trend over the last one year or so, a fall was expected, he said.
All the insurance stocks dropped around 3.5 per cent on average, according to data of LankaBangla Securities.
Among the major sectors, banking and non-bank financial institution and engineering also dropped while textile, mutual fund and pharmaceutical rose, showed the data.
The market is now at a very good stage where investor participation is high and the index is rising slowly, said a stock broker.
If investors invest wisely considering fundamentals of listed companies, the market will remain vibrant, he said.
The detrimental scenario is that many investors are rushing for companies based on rumours to make gains overnight, which is not a good sign, he added.
At the DSE, 209 companies' stocks advanced, 149 declined and nine remained unchanged.
Zaheen Spinning topped the gainers' list, rising 10 per cent, followed by Index Agro Industries, Mir Akhter Hossain, Coppertech Industries and S Alam Cold Rolled Steels.
Stocks of Beximco were traded the most, worth Tk 229 crore, followed by LankaBangla Finance, Pioneer Insurance, Fortune Shoes and National Polymer Industries.
Dhaka Insurance shed the most, dropping 11.49 per cent, followed by GBB Power, Global Insurance, Bangladesh General Insurance Company and National Feed Mills.
Chittagong Stock Exchange (CSE) also soared yesterday. The CASPI, the general index of the port city bourse, was reduced by 69 points, or 0.39 per cent, to 17,585.
Among the 319 stocks to witness trade, 175 rose, 120 fell and 24 remained unchanged.