DSE turnover exceeds Tk 5b after a month

FE REPORT | Thursday, 12 January 2023

Daily trade turnover on the Dhaka Stock Exchange (DSE) crossed Tk 5 billion-mark after a month on Wednesday as investors chased sector-specific issues in anticipation of quick gains.
Turnover, a crucial indicator of the market, stood at Tk 5.32 billion on the country's premier bourse, climbing 15 per cent from the previous day.
It was the biggest single-day transaction volume since December 13 last year, when the turnover totaled a record Tk 6.16 billion.
Along with the increasing turnover, DSEX, the prime index of the DSE, went up by 4.24 points to settle at 6,209, after a 14 points gain from the day before.
The market saw volatility, with sellers dominating the market from mid-session, since cautious investors perceived every bounce back as an opportunity to liquidate their positions amid the prolonged bearish sentiment in the market.
General investors increased their participation hoping that the market will not fall further due to the regulator's assurance to keep the 'floor price' in place for now, market operators said.
The Bangladesh Securities and Exchange Commission ensured last week that the floor price will not be withdrawn until the secondary market gets the due momentum.
Moreover, the central bank governor said the interest cap is unlikely to be lifted anytime soon.
With the news from respective regulators about the floor price and the lending rate cap, stock investors seemed to be leaning for some oversold shares.
"The bargain hunters showed their buying interest on some oversold stocks at lucrative prices based on the regulators' assurance," said International Leasing Securities.
Stocks managed to stay afloat as investors continued to chase sector-specific issues in anticipation of quick gains, said EBL Securities.
"The investors' buying behavior in selective issues propped up the core index and helped it stay afloat by the end of the session".
Five stocks such as Sea Pearls Beach, Beacon Pharma, Bangladesh Shipping Corporation, Unique Hotel & Resorts, and JMI Hospital Requisite jointly accounted for 8 points rise of the DSEX, according to amarstock.com, a market data analyst.
The pharma sector kept its dominance in the turnover list, capturing 17 per cent of the day's total turnover, followed by miscellaneous (15 per cent) and IT (13 per cent).
Most of the issues, however, suffered price erosion. Out of 334 issues traded, 127 issues closed lower, 40 higher and 167 remained unchanged on the DSE trading floor.
Bangladesh Shipping Corporation became the most-traded stock with shares worth Tk 413 million changing hands, followed by Bashundhara Paper Mills, Genex Infosys, JMI Hospital Requisite and Intraco Refueling Station.
Pragati Life Insurance posted the highest gain of 7.48 per cent while Kohinoor Chemicals was the top loser, losing 2.56 per cent.
However, the Chittagong Stock Exchange (CSE) ended slightly lower with the CSE All Share Price Index (CASPI) losing 18 points to settle at 18,328 and its Selective Categories Index (CSCX) shedding 12 points to close at 10,983.

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