DSE prime index crosses 5000-point threshold

The prime index of Dhaka Stock Exchange (DSEX) surpassed the 'psychological' threshold of 5,000-mark Thursday for the first time after its inception in January 2013, as the market was on a steady gaining streak for eight days.
The DSE Broad Index (DSEX) was introduced on the premier bourse on January 28, 2013 with a base of 4,055.09 points, replacing the DSE General Index (DGEN), which contains inflated points due to previously faulty calculation method.
The market started with an upbeat mood and remained vibrant throughout the session amid strong buying pressure from the investors, including global fund managers.
DSEX, the prime index of the DSE jumped 47.20 points or 0.94 per cent to close at 5,026.92 points, which was the highest level of DSEX since its inception on January 28, 2013.
However, before inception of DSEX, the ever highest level of DSE key index-DGEN -- was 8,918.51 points reordered on December 5, 2010. DSE turnover was also the ever highest of Tk 32.49 billion on that day.
Along with DSEX, the total turnover on the DSE also hit year's second highest and amounted to Tk 11.03 billion, registering an increase of 18.34 per cent over the previous session's Tk 9.32 billion.
Market insiders attributed the current market trend to investors' growing confidence and fresh funds injection in the stock market.
"The recent rally has been largely supported by high market liquidity and fundamental stocks," said an analyst.
Single digit interests on deposits, favourable economic factors and political stability are encouraging investors to make fresh investments, he added.
LankaBangla Securities said, "Index closing holds the historic high level of 5,000-mark after a week-long buoyant move in large cap stocks".
Investors appeared to be twigging higher value in stocks which made the index to close with strong ground where market indicators are showing resilience, said the stock broker.
Factors, including stable economic outlook, relatively calm in the political field and vast population have attracted some global top fund managers, the stock broker added.
Akter H Sannamat, managing director of Union Capital, said the participation of all section of investors is increasing as the market is showing stability in recent times.
"Recent improvements in market situation seem to have heightened investors' confidence and pulled previously inactive investors, thus improving overall activity," said Mr Sannamat.
He, however, said that the new investors should carefully invest in a rising market and should analyse the fundamentals of securities before put funds.
The securities regulator -- Bangladesh Securities & Exchange Commission (BSEC) in its last meeting on September 23 also advised the investors to make their investment decision based on company's fundamental and not to pay heed to any rumours.

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