New records in market cap, turnover, indices

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FE Report
Stock prices led by banking sector and insurance issues continued to surge amid a buying onslaught Monday on the Dhaka Stock Exchange (DSE) setting new records in total market capitalisation, turnover and indices.
The total market capitalisation and daily turnover, for the first time crossed $ 10 billion-mark and Tk 3.0 billion-mark respectively on the DSE.
Trading resumed on the day after three consecutive days' of holiday (Friday and Saturday as weekly holidays and Sunday for Durga Puja festival).
Monday's total market capitalisation also raised the stock market's ratio to about 13 per cent to the gross domestic product (GDP) of Bangladesh.
The buying onslaught pushed the benchmark DSE General Index (DGEN) also to cross 2900 point-mark for the first time.
Meanwhile, the Securities and Exchange Commission (SEC) cautioned the general investors to think very carefully before investing in the present stock market terming it an over-heated one.
"Our main concern is the retail investors so that they do not burn their fingers," a senior SEC official told the FE.
The total market capitalisation closed at US$10.112 billion (Tk 694.607 billion) on the day.
On Thursday, the last trading session of the last week, the total market capitalisation was Tk 687.161 billion.
The total turnover closed at Tk 3.168 billion from its previous Tk 2.413 billion Thursday last.
Earlier, the highest turnover on the DSE was recorded at Tk 2.75 billion July 22 of the current year.
The DGEN closed at 2901.692 to reach gaining 41.131 points.
The DGEN earlier crossed 2700-mark October 7 and 2800-mark on October 9 on the DSE.
The buying frenzy was so acute that there was no seller of Trust Bank on the day with the closing price of the issue at Tk 1166.00 per share registering a 12.49 per cent rise on the day.
The debut trading of Trust Bank took place October 1 last with Tk 849.25 per share against the offer price of Tk 150 (premium Tk 50).
Market operators said the capital market has been showing buoyancy in recent time mainly due to shortage in supply of good shares and investment of huge fund from the banks with a hope of quick return.
Moreover, investors come with fresh enthusiasm in the stock market following news that the paid-up capital of banks will be increased soon.
"But, the prices of some shares have already been overpriced as the investors have bought these without analysing the company fundamentals," a DSE source said.
DSE-20 Index (DS20) and All Shares Price Index (DSI) gained 40.982 points and 31.471 points to close at 2223.170 and 2456.606 respectively.
Out of 215 traded issues prices of 120 gained, 83 declined and 12 remained unchanged.
Trust Bank was the turnover leader with traded shares worth Tk 219.516 million followed by Desco Tk 182.062 million, BRAC Bank Tk 162.074 million, Summit Power Tk 143.629 million, Prime Bank Tk 138.855 million, AB Bank 108.591 million, Social Investment Bank Tk 99.424 million, Premier Bank Tk 88.348 million, Shahjalal Bank Tk 83.990 million and NCC Bank 81.375 million.
BRAC Bank gained 3.67 per cent to Tk 1579.50, Prime Bank 7.18 per cent to Tk 910.50, Social Investment Bank 17.30 per cent to Tk 361.00, Premier Bank 7.10 per cent to Tk 343.00, Shahjalal Bank 10.21 per cent to Tk 372.25 and NCC Bank 7.77 per cent to Tk 468.00.
Prices of Al Arafah Islami Bank, Central Life Insurance, Federal Life Insurance, Jamuna Bank, Mercantile Insurance, Pragati Life Insurance, Purabi General Insurance, Rupali Insurance, Prime Textile and Saiham Textile registered a rise over 10 per cent on the day.
Prices of Desco declined 8.57 per cent to Tk 1209.50, Summit Power 3.44 per cent to Tk 1599.50 and AB Bank 0.44 per cent to Tk 3059.75.
Meanwhile, executive director of the SEC Farhad Ahmed at a press briefing said that the gazette notification regarding the sanctioning of loan by the merchant banks was published recently.
He said the ratio of loan approval by the merchant banks will be fixed very soon, but as the gazette notification has been published, all merchant banks have to follow the uniform rules in loan disbursement.
"The SEC will fix the ratio for approval of the loan to the customers in the ups and downward behaviour of the stock market as the ratio will be a flexible provision," Farhad Ahmed said.