Stocks kept their soaring trend on Sunday also with the Dhaka Stock Exchange (DSE) core index crossed the 4,800-mark after 10 months, thanks to the investors' growing confidence in the new commission.
DSEX, the DSE key index, went up by 156.16 points or 3.32 per cent to settle at 4,859 during the four and a half hours of trading session on the day. It was the highest level of DSEX since October 9, 2019.
DSEX surged 900 points or 23 per cent in the past two months since 16 June. During the period, the market capitalisation also soared 17 per cent to reach at Tk 3,635 billion on Sunday.
Daily trade turnover on the prime bourse also scaled Tk 13 billion-mark again, as the local and foreign investors remained active on the market amid growing confidence.
Turnover, a crucial indicator of the market, stood at Tk 13.51 billion on the country's premier bourse, climbing further by 12 per cent over the previous day's mark of Tk 12.08 billion.
It was the biggest single-day turnover in the past seven weeks since June 28, when turnover totalled Tk 25.43 billion, riding on the huge block trade of GSK Bangladesh.
The market turnover has been staying above Tk 10 billion over the last five consecutive sessions, as the investors took fresh position on large-cap stocks with new hopes.
Market operators said after staying low for a long time, the market has been soaring due to the investors' growing confidence in the new leadership of the Bangladesh Securities and Exchange Commission (BSEC), as it took some tough steps to restore discipline.
The new commission has taken some measures against errant directors of some listed companies and cancelled some initial public offering (IPO) proposals, giving a clear message that it would not be easy to manipulate the market and bring weak companies in presence of the new leadership, they also said.
The stock market regulator continued its tough stance on gamblers, came up with a number of conditions for junk stocks, and slapped big fines on several companies as part of its efforts to go tough on the wrongdoers.
The BSEC has punished around 60 people and institutions in the last two months for various securities market-related wrongdoings.
Khairul Bashar Abu Taher Mohamed, chief executive officer of MTB Capital, said the market has been rising mainly due to the investors' growing confidence, as the new commission has taken some steps against the wrongdoers.
"The securities regulator's strict stance in ensuring mandatory shareholding, giving exemplary punishment to the wrongdoers, and extending trading hours prompted local and foreign investors to take position on large-cap stocks," said Mr Bashar, also former secretary general of Bangladesh Merchant Bankers Association.
He noted that the regulatory measures were crucial for the rise in confidence of the stock investors, which geared up the index and the turnover in recent times.
However, the investors should carefully invest in such a rising market, and should analyse fundamentals of the securities beforehand, he opined.
The two other DSE indices also ended higher. The DS30 index, comprising blue chips, advanced 45.58 points to finish at 1,639, and the DSE Shariah Index rose 21.42 points to close at 1,109.
Among the majors sectors, financial institutions posted the highest gain of 5.90 per cent, closely followed by banking with 5.80 per cent, textile 5.10 per cent, and power 3.90 per cent.
Prices of more than 85 per cent traded companies soared, as out of the 354 issues traded on the DSE floor, 301 closed higher, 42 closed lower, and 11 issues remained unchanged.
A total of 230,966 trades were executed in the day's trading session with a trading volume of 514.41 million shares and mutual fund units.
The market-cap of the premier bourse also rose to Tk 3,635 billion on Sunday, from Tk 3,550 billion in the previous session.
Beximco Pharmaceuticals topped the turnover chart with shares worth Tk 806 million changing hands, closely followed by Beximco, Brac Bank, Square Pharma and Sonar Bangla Insurance.
PHP First Mutual Fund was the day's best performer, posting a gain of 13.95 per cent, while Eastern Cables was the worst loser, losing 3.49 per cent.
The Chittagong Stock Exchange (CSE) also ended higher with the All Shares Price Index (CASPI) jumping 494 points to close at 13,855, and the Selective Categories Index - CSCX - soaring 288 points to finish at 8,361.
Of the issues traded, 251 gained, 25 declined, and 20 remained unchanged on the CSE.
The port-city bourse traded 26.92 million shares and mutual fund units with the turnover value of Tk 460 million.
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