DSE posts highest turnover in a month, buoyed by re-imposition of floor prices

FE REPORT | Monday, 6 March 2023

The Dhaka Stock Exchange (DSE) on Sunday posted the highest turnover in one month as investor participation increased.
It posted a turnover of Tk 6.62 billion, the highest since February 9. During the period, the premier bourse posted transactions of Tk2.31 billion-Tk 6.08 billion.
On Sunday, the DSE broad index DSEX advanced moderately breaking the losing streak of the previous two sessions.
Small-cap companies were able to drive up the broad index as large-cap stocks did not see any price erosion due to floor prices.
Among the sectors, small-cap companies from the IT segment witnessed the highest investor participation.
At the end of the session, the DSEX closed at 6250.20 points with a rise of 0.58 per cent or 36.45 points.
Of the total issues traded, 152 advanced, 14 declined and 174 were unchanged on Sunday.
The market operators said the securities regulator's recent decision regarding re-imposition of floor prices for 168 securities might be a catalyst for the price appreciation.
"Perhaps, a perception is created among investors that there will be no immediate changes in the regulatory policy," said a senior official of LankaBangla Securities.
The floor price may not be withdrawn in near future, he added.
"A section of investors became active considering floor price as the base price in order to exit positions," he said.
There is another section of investors who opposite the floor price.
On Wednesday, the Bangladesh Securities and Exchange Commission (BSEC) re-imposed floor price for 168 securities amid widespread criticisms.
Except for the mutual funds, all other sectors saw marginal price appreciation on the premier bourse on Sunday.
"The bargain hunters showed their buying interest in sector-specific stocks at lucrative prices as the regulator continuously encourages the investors to increase fund flows to the market," said a market review of International Leasing Securities.
Of the sectors which saw price appreciation, engineering advanced 0.1 per cent, fuel & power 0.1 per cent, miscellaneous 1.0 per cent, pharmaceuticals & chemicals 0.3 per cent, textile 0.3 per cent, and travel & leisure 5.8 per cent.
Mutual fund was the only one sector which declined 0.2 per cent on the premier bourse.
Investors' participation was concentrated mostly on IT sector which grabbed 15.3 per cent of the market turnover followed by travel & leisure 13.7 per cent, miscellaneous 10 per cent, life insurance 8.9 per cent, food & allied 8.2 per cent, and pharmaceuticals & chemicals 7.8 per cent.
Bangladesh Shipping Corporation topped the scrip-wise turnover chart with a value of Tk 481 million followed by Genex Infosys Tk 374 million, AND Telecom Tk 270 million, Sea Pearl Beach Resort & Spa Tk 264 million and Eastern Housing Tk 247 million.
Bangladesh General Insurance Company was the number one gainer with a rise of 9.96 per cent to close at Tk 65.10 each.
Union Capital was the day's worst loser after declining 10 per cent or Tk 0.9 to close at Tk 8.10 each.

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