Regulator asks bullish bourses to stay cautious
The regulator has asked the bourses to keep an eye on the current upward trend in the stockmarket against the backdrop of a bullish momentum that continued yesterday as well.
DSEX, the benchmark index of Dhaka Stock Exchange, rose 38.45 points or 0.67 percent to finish the day at 5,708.24 points -- the highest since the introduction of the index on January 27, 2013.
The turnover stood at Tk 2,013.44 crore, down 7.67 percent from the previous day.
“The stockmarket got back its rhythm after a long bearish period. But the twin bourses will have to look after the consistency between the share transactions and the current upward trend,” said M Khairul Hossain, chairman of Bangladesh Securities and Exchange Commission.
Massive reforms have been carried out after the price debacle in early 2011. “The market is now heading towards vibrancy,” he said.
“None should overlook his or her own responsibility for little gain,” Hossain said while addressing the 60th anniversary of Dhaka Stock Exchange at Sonargaon Hotel on Monday evening.
Referring to the finance minister's expectation of a 'strong' capital market in the next three years, he said: “We also believe that our capital market will be a leading one in the region.”
Finance Minister AMA Muhith while addressing the launch of MIDAS Investment, a subsidiary of MIDAS Financing, on Sunday said: “I believe we will have a strong capital market within three years.”
Hossain said there are many state-owned enterprises under different ministries, but they are not being listed on the capital market due to their internal strategies.
“I have already requested the finance minister to take immediate steps to bring the state-owned enterprises to the stockmarket, and the minister assured me of taking necessary steps in this regard,” he said.
Hossain said the market capitalisation to GDP ratio in Bangladesh is only around 21 percent, while the ratio is around 70 percent in neighbouring India.
“It shows the potential of our capital market. We want to take the ratio to 50 percent and it is possible if the government utilises the stockmarket as a source of financing for its mega projects,” he said.
Of the traded issues on the premier bourse yesterday, 114 advanced, 199 declined and 15 remained unchanged.
Islami Bank dominated the turnover chart with its transactions of 1.59 crore shares worth Tk 73.09 crore, followed by Beximco, Summit Power, City Bank and National Bank.
Banking shares led the market both in terms of turnover and return. Seven of the top ten gainers were from banking stocks, which helped the sector go up 4.6 percent in market capitalisation. Zahintex Industries was the day's best performer, posting a 10 percent gain. CVO Petrochemical Refinery was the worst loser, plunging 9.96 percent. Chittagong stocks also rose with the bourse's benchmark index, CSCX, increasing 95.47 points or 0.89 percent to close at 10,741.89.
Losers, however, beat gainers as 165 declined and 95 advanced, while 12 finished unchanged on the Chittagong Stock Exchange. The port city bourse traded 4.28 crore shares and mutual fund units, generating a turnover of Tk 119.82 crore.