DSE turnover hits all time high

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FE Report
The total turnover on the Dhaka Stock Exchange (DSE) Tuesday raced to Tk 2.395 billion (239.5 crore), the highest ever, amid the continued rally of share prices when the benchmark DSE General Index closed near 2300-mark, up by 49.44 points from that of the previous day.
The rally of stock prices on the day was led by issues in banking, insurance and pharmaceuticals sectors with the enhanced participation of local institutions and portfolio investors.
Institutional investors and portfolio investors accounted for around 65 per cent and 25 per cent respectively of the day's total turnover, DSE sources said.
The DSE-20 Index (DS20) and All Shares Price Index (DSI) gained by 58.190 points and 39.937 points and closed at 2044.223 and 1883.863 respectively. The DGEN closed at 2298.85.
The turnover crossed the Tk 2.0 billion mark on the day after a gap of 22 days. The last time the bourse witnessed a similar amount of turnover on June 26 when the total turnover was Tk 2.344 billion.
The total turnover was Tk 1.905 billion Monday. The turnover of the bourse first crossed the Tk 2.0 billion-mark on June 3 this year.
Of the total turnover, a total of Tk 235.40 million was traded in block transaction in which Southeast Bank was at the helm with Tk 159 million traded in the block market on the day.
Talking to the FE, DSE Chief Executive Officer (CEO) Salahuddin Ahmed Khan said there is a strong demand for securities in the market, but the supply of those securities is not adequate. As a result, the investors are concentrating on few securities, he said.
"Given the current economic situation of the country, the upward trend of stock market is not an overheated one, but imbalanced to some extent due to overvalue of prices of some scrips," he said.
He also said a strong buying support both from retail, institutional and portfolio investors propelled the daily average turnover to the new height.
Share floatation by some good companies from telecommunications, power, gas and energy sectors are in the pipeline for investment in the stock markets. This also led to higher transaction on the DSE, he observed.
The injection of money into the stock market has been maintaining a steep rise mainly due to lower interest rates offered by banks, higher inflow of remittances, financing from merchant banks and other financial institutions, he added.
"The idle money of the banking sector is also being pourded into the market by the investors," the DSE chief said.
The total market capitalisation further rose to Tk 511.506 billion from Tk 501.864 billion of the previous day.