DSE turnover crosses Tk 300cr; gen index hits 2901.69 points

Turnover on the Dhaka Stock Exchange (DSE) yesterday crossed Tk 300 crore mark for the first time with the stock market regulator terming the recent upward trend 'unusual'.
The total turnover on the DSE recorded an all time high at Tk 316.83 crore, surpassing the previous record of Tk 275 crore set on July 22 this year.
The benchmark general index of the premier bourse also crossed 2900 mark for the first time.
The Securities and Exchange Commission (SEC) urged investors to invest in stocks cautiously.
“Prices of some stocks do not match the fundamentals of the securities,” said Farhad Ahmed, executive director of SEC, talking to reporters at his office.
He said the ongoing upward trend is risky for the small investors and that is why the SEC is worried about the retail investors.
The small investors may face losses when the market witnesses a big price correction, Ahmed added.
Replying to a query, he said it is not the responsibility of the SEC to cool down the market. However, the SEC does this to protect the interest of the small investors, he added.
Asked whether the SEC failed to stabilise the market in the previous occasions through initiating some measures such as withdrawal of money netting facility or putting some shares on the spot trade, he said he does not think so.
Along with the turnover, the benchmark index of the premier bourse, DSE General Index hit all time high. The DSE General Index closed at 2901.69 points, up by 41.13 points, or 1.43 percent.
The DSE All Share Price Index also recorded an all time high at 2456.6 points, up by 31.47 points, or 1.29 percent.
A total of 18,712,804 shares changed hands on the DSE. Of the issues traded, 120 advanced, 83 declined and remained 12 unchanged.
Meanwhile, the SEC held a discussion with top officials of the merchant banking wings of financial institutions.
At the meeting, the SEC discussed the implementation of the margin loan rules, which was recently okayed by the SEC.
As per the rules, the merchant banks will have limitations to offer margin loans to investors, as the SEC will from time to time fix the ratio of providing loans for the investors. However, the SEC is yet to fix any ratio.
The new rules will also put a bar on a merchant bank providing loans to its officials and close relatives.
Meanwhile, price indices on the Chittagong Stock Exchange (CSE) also rose yesterday with the gainers outnumbering the losers.