DSE sees highest single-day turnover since Jan 31
FE Report | Wednesday, 9 March 2011
FE Report
The DSE experienced the highest single-day turnover since January 31 Tuesday. The total turnover increased to Tk 9.64 billion, in value term, on the day from that of Tk 8.22 billion in the previous session. The turnover rose on the day mainly due to increased participation of both retail and institutional investors. The government's positive measures including formation of a big-scale special fund to give liquidity support to the market and introduce buy-back system are restoring the investors' confidence gradually which was reflected in the market, dealers said. The DSE General Index (DGEN), the yardstick of the market, rose 271.19 points or 4.69 per cent to 6,051.10. The DSE All Shares Price Index (DSI) shot up by 220.93 points or 4.60 per cent to 5,017.46. The DSE-20 blue chip index rose 136.02 points or 3.50 per cent to 4,017.36. A total of 105.25 million shares changed hands which were 87.97 million in the previous session. The trade deals also increased to 199,101 against 182,461 from Monday. According to the market insiders, investors felt secured over the latest government move on capital market and rushed to buy shares of 'undervalued' sectors that experienced severe price correction in the last two months. However, analysts advised the investors to invest fundamentally strong stocks to avoid any further crash. "The continuous fall of share prices has already been stopped and panicky situation has almost gone from the market following the government's positive steps," said President of the DSE Shakil Rizvi. He said "The market is almost stable now as the investors have regained their confidence". Market analyst Osman Imam said it is difficult to say whether the investors have regained confidence in full scale or not. But from the turnover volume it is evident that participation of investors has increased. "It is not rational that shares of all companies will rise indiscriminately, investors should only look for fundamentally strong shares" he opined. The market opened with a positive mood, but after five minutes of trading it went negative for a while and fell 39 points. After that it started gaining and finally ended the day 271 points higher. The market capitalisation also increased and stood at Tk 2,748.90 billion against Tk 2,647.35 billion in the previous session. The gainers took strong lead over the losers as out of 257 issues traded on the day, 243 advanced, only 11 declined and three remained unchanged. All sectors closed in positive zone. Among the major sectors, banks, NBFIs, telecommunications, fuel and power, insurance and pharmaceuticals gained most on the day. NBFIs, insurance and fuel and power sector gained 4.80 per cent, 6.40 per cent and 4.60 per cent respectively on the day. Eastern Bank was the top gainer posting a rise of 9.98 per cent followed by Ocean Container Limited, Federal Insurance, Summit Alliance Port Limited, Karnaphuli Insurance, Active Fine Chemicals, CMC Kamal, KPCL, City General Insurance and Navana CNG. Beximco Limited and Bextex Limited were the top turnover leaders with shares worth Tk 522.80 million and Tk 479.54 million respectively changed hands. The other turnover leaders of the day were Aftab Auto, Peoples Leasing, United Airways, Summit Power, Maksons Spinning, Grameenphone, National Bank and Beximco Pharma. Prime Finance and Bank Asia were the top losers on the day. Prime Finance and Bank Asia lost 39.59 per cent and 26.14 per cent respectively following the price adjustment after record date.
The DSE experienced the highest single-day turnover since January 31 Tuesday. The total turnover increased to Tk 9.64 billion, in value term, on the day from that of Tk 8.22 billion in the previous session. The turnover rose on the day mainly due to increased participation of both retail and institutional investors. The government's positive measures including formation of a big-scale special fund to give liquidity support to the market and introduce buy-back system are restoring the investors' confidence gradually which was reflected in the market, dealers said. The DSE General Index (DGEN), the yardstick of the market, rose 271.19 points or 4.69 per cent to 6,051.10. The DSE All Shares Price Index (DSI) shot up by 220.93 points or 4.60 per cent to 5,017.46. The DSE-20 blue chip index rose 136.02 points or 3.50 per cent to 4,017.36. A total of 105.25 million shares changed hands which were 87.97 million in the previous session. The trade deals also increased to 199,101 against 182,461 from Monday. According to the market insiders, investors felt secured over the latest government move on capital market and rushed to buy shares of 'undervalued' sectors that experienced severe price correction in the last two months. However, analysts advised the investors to invest fundamentally strong stocks to avoid any further crash. "The continuous fall of share prices has already been stopped and panicky situation has almost gone from the market following the government's positive steps," said President of the DSE Shakil Rizvi. He said "The market is almost stable now as the investors have regained their confidence". Market analyst Osman Imam said it is difficult to say whether the investors have regained confidence in full scale or not. But from the turnover volume it is evident that participation of investors has increased. "It is not rational that shares of all companies will rise indiscriminately, investors should only look for fundamentally strong shares" he opined. The market opened with a positive mood, but after five minutes of trading it went negative for a while and fell 39 points. After that it started gaining and finally ended the day 271 points higher. The market capitalisation also increased and stood at Tk 2,748.90 billion against Tk 2,647.35 billion in the previous session. The gainers took strong lead over the losers as out of 257 issues traded on the day, 243 advanced, only 11 declined and three remained unchanged. All sectors closed in positive zone. Among the major sectors, banks, NBFIs, telecommunications, fuel and power, insurance and pharmaceuticals gained most on the day. NBFIs, insurance and fuel and power sector gained 4.80 per cent, 6.40 per cent and 4.60 per cent respectively on the day. Eastern Bank was the top gainer posting a rise of 9.98 per cent followed by Ocean Container Limited, Federal Insurance, Summit Alliance Port Limited, Karnaphuli Insurance, Active Fine Chemicals, CMC Kamal, KPCL, City General Insurance and Navana CNG. Beximco Limited and Bextex Limited were the top turnover leaders with shares worth Tk 522.80 million and Tk 479.54 million respectively changed hands. The other turnover leaders of the day were Aftab Auto, Peoples Leasing, United Airways, Summit Power, Maksons Spinning, Grameenphone, National Bank and Beximco Pharma. Prime Finance and Bank Asia were the top losers on the day. Prime Finance and Bank Asia lost 39.59 per cent and 26.14 per cent respectively following the price adjustment after record date.