DSEX rises 7-month high, turnover exceeds Tk 17 billion

The stock market managed to stay afloat for eight sessions in a row with turnover crossing Tk 17 billion on Wednesday, as buoyant investors put fresh bets on lucrative stocks.
Following the recent market recovery, the Bangladesh Securities and Exchange Commission (BSEC) on Tuesday removed the floor for three more stocks - Anwar Galvanizing, Renata, and Orion Pharma.
After the removal of the floor, Anwar Galvanizing and Renata experienced price erosion of 8.72 per cent and 6.25 per cent, while Orion Pharma soared 5.28 per cent.
Orion Pharma also emerged as the most-traded stock with shares worth Tk 1.10 billion changing hands, accounting for 5.83 per cent of the day's total turnover.
Turnover on the Dhaka bourse reached Tk 17.30 billion for the first time in sixteen and a half months, with 10 most-traded stocks contributing more than one-fourth of it.
The market turnover stayed above Tk 10 billion in the previous five days as investors took fresh positions in large-cap stocks, riding on high hopes.
The market-cap of the DSE, calculated by multiplying the total number of outstanding shares with the current market prices, increased by Tk 237 billion in the eight days through Wednesday to Tk 7,711 billion.
The benchmark index of the Dhaka bourse went up 6.44 points to settle at seven-month high to 6,352. The DSEX added 273 points in the past eight consecutive sessions.
The recent growth in turnover and index -- the two most important indicators of the market -- suggests that investors have been regaining confidence in the market, said Md Sajedul Islam, managing director of Shyamol Equity Management.
The DSES index, which represents Shariah-based companies, rose more than 2 points to 1,387.
However, the DS30 index, which consists of blue-chip companies, shed more than 8 points to 2,135, as major blue chip stocks, such as Renata, Brac Bank, Trust Bank and Delta Life Insurance, saw price erosion.
According to EBL Securities, stocks extended rally as optimistic investors continued their chase for sector-specific trendy stocks.
However, cautious investors preferred to realise their recent gains from the prevailing upbeat vibe in the market, particularly from blue chip stocks, said the stockbroker.
The pharmaceuticals sector led the day's turnover chart, accounting for 20 per cent of the day's total turnover, followed by engineering (16 per cent) and textile (11 per cent).
A majority of the stocks saw price surge, as out of the 394 issues traded, 198 closed higher, 158 ended lower and 38 remained unchanged on the DSE trading floor.
Bangladesh Finance was the day's top gainer, soaring 10 per cent, while Khulna Printing & Packaging was the worst loser, losing 8.95 per cent.
The securities regulator recently formed a probe body to investigate the abnormal price surge of Khulna Printing in the last few months.
The Chittagong Stock Exchange (CSE) also ended higher with its All Share Price Index (CASPI) rising 72 points to settle at 18,175 and the Selective Categories Index (CSCX) gaining 43 points to close at 10,879.
The port city bourse traded 9.87 million shares and mutual fund units with a turnover volume of Tk 292 million.
Meanwhile, 175 securities are still trading below the floor. GSP Finance lost the most, with 42.6 per cent price erosion, to close at Tk 17.4 per share on Wednesday.
It was followed by IPDC Finance, ML Dyeing, Prime Insurance, and Metro Spinning.

[email protected]