DSE turnover hits nearly one-month high

Stocks extended the winning streak Monday, with turnover hitting almost one-month high, as investors continued their buying spree on sector-wise issues riding on regulatory support.
Following the previous day's steep rise, the market jumped at opening and the key index rose about 60 points within the first hour of trading. However, half of the early gains faded away amid late hours selling pressure.
Finally, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 30.03 points or 0.48 per cent to 6,164.
DSEX recovered more than 183 points in the past two days after losing over 386 points in the previous 13 days after the Eid vacation.
Turnover, another important indicator of the market, jumped to nearly one-month high and amounted to Tk 9.22 billion, which was 62 per cent higher than the previous day's tally of Tk 5.68 billion.
Market operators said the bargain hunters showed their buying interest on stocks at a lucrative price after the recent steep correction.
The market witnessed a substantial increase in participation as the investors put fresh funds on lucrative issues hoping that the market will not fall further due to floor price mechanism, said a merchant banker.
Besides, media reports that opening of letter of credit (LC) dropped drastically and month-on-month remittance inflow hit two-year high in July helped to tame the investors' pessimism, he said.
"The bargain hunters put fresh bets on sector-wise issues as they are getting back their confidence in the regulatory support," said International Leasing Securities.
The institutional investors along with the individual ones increased their participation in the market as the securities regulator set the price floors on all stocks to curb free fall, said the stockbroker.
Besides, the regulator ensured a positive response from the Bangladesh Bank in terms of exposure calculation, the stockbroker added.
The market continued its upward momentum right from the start of the trading session as bargain hunters continued to look for beat-down stocks, said EBL Securities.
The morning optimism faded a bit as some investors perceived it as an opportunity to sale their holdings, said the stockbroker.
Two other indices also ended higher. The DS30 index, comprising blue chips, rose 10.61 points to finish at 2,204 and the DSE Shariah Index (DSES) advanced 7.61 points to close at 1,347.
Most of the sectors posted gains with textile sector saw the highest gain of 2.0 per cent, followed by financial institutions with 1.10 per cent, telecom 0.80 per cent, pharma 0.40 per cent, power 0.40 per cent and banking 0.20 per cent.
General insurance sector witnessed the highest correction, losing 2.0 per cent, after gaining sharply by 8.80 per cent in the previous day riding on floor price adjustment.
The day's top 10 losers were general insurers with Nitol Insurance was the highest loser, losing 4.92 per cent, followed by Bangladesh National Insurance with 4.68 per cent, Janata Insurance 4.01 per cent, Phoenix Insurance 3.99 per cent and Express Insurance 3.93 per cent.
Of the 382 issues traded, 203 closed higher, 102 lower and 77 issues remained unchanged on the DSE trading floor.
Beximco was the most traded stock with shares worth Tk 441 million changing hands, closely followed by Fortune Shoes, Sonali Paper & Board Mills, Intraco Refueling Station and Square Textile.
Esquire Knit Composite was the day's top gainer, soaring 9.97 per cent, followed by Hwa Well Textile with 9.90 per cent, BIFC 9.47 per cent, Tosrifa Industries 9.31 per cent and Ambee Pharma 8.74 per cent.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index (CASPI), rising 136 points to settle at 18,112 and its Selective Categories Index (CSCX) gaining 81 points to close at 10,851.
Of the issues traded, 175 advanced, 39 declined and 72 issues remained unchanged on the CSE trading floor.
The port-city bourse traded 6.38 million shares and mutual fund units with turnover value of Tk 184 million.

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