DSE turnover hits 14-month high

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FE Report
The Dhaka Stock Exchange (DSE) witnessed a record amount of turnover Wednesday, hitting a 14-month high, as strong liquidity inflow supported by optimistic buying pulled the market up.
The daily turnover value hit an almost 14-month high of Tk 12.88 billion since July 31, 2011, when it was recorded at Tk 13.41 billion. This was also 18.27 per cent higher compared to previous session's Tk 10.89 billion.
The single-day trade volume also scaled a fresh high to 285.98 million Wednesday, breaking the record of 246.38 million of just three days back.
However, the highest-ever single-day turnover of Tk 32.49 billion was recorded at the DSE on December 5, 2010.
Along with the increasing turnover value, the benchmark general index of the DSE - DGEN -- also rose by 46.78 points or 1.0 per cent from the previous session to 4,678.83.
Analysts said the market rallied strongly with the record high turnover value as the recent market trend boosted up the investors' confidence and encouraged them to take fresh position in the market.
"The soaring investor participation fuelled the trade volume and as a result, the turnover rose significantly," said a stockbroker.
"Global credit rating agency Moody's Investors Service Tuesday rated Bangladesh's outlook as stable for the third consecutive year, which also made investors optimistic," he said.
Mr Yawer Sayeed, managing director and chief executive officer of AIMS of Bangladesh, an asset management company, said the market is almost stable (though it is at an early stage) and the turnover value is increasing gradually which is a positive indication.
"The soaring turnover value indicates that the demand on the market was strong and investors were interested to the market," said Mr Sayeed, adding "If the positive trend continues, the market will be more stable in near future."
DSE President Rakibur Rahman said merchant bankers, fund managers, stock brokers and some foreign portfolio managers became active in the market which was reflected in the overall market uptrend and higher turnover value.
"The market keeps soaring with higher turnover value as a stable money market and positive macro-economic variables, increasing remittance inflow had boosted up the investors' confidence and they went for a buying spree," said Mr Rahman.
He also advised the investors not to depend more on margin loan-based trading or pay heed to any rumours.
"After the resistance breaking gain on Tuesday (4,600 mark), market remained upbeat for another day mostly relying on banks, NBFIs and mutual funds. Fresh fund flow to these sectors increased most of the companies' prices," commented LankaBangla Securities, a leading stock broker.