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DSE daily turnover crosses Tk 15b-mark after four months

DSEX adds 329 points in eight straight sessions


FE REPORT | May 18, 2021 00:00:00


Turnover on the Dhaka Stock Exchange (DSE) crossed Tk 15 billion-mark after four months on Monday as enthusiastic investors put fresh stakes on stocks amid eased virus worries.

Turnover, a crucial indicator of the market, stood at Tk 15.35 billion on the country's premier bourse, in a further buck by 8.20 per cent over previous day's tally of Tk 14.18 billion.

It happens to be the biggest single-day transaction since January 25, this year, when the turnover totaled a record amount of Tk 15.85 billion.

Along with high turnover, DSEX, the benchmark index of the DSE, also rose 26.92 points or 0.46 per cent to settle at four months high level at 5,840. DSEX added 329 points in the last eight consecutive sessions.

Two other indices also edged higher with the DSE 30 Index, comprising blue chips, advanced 6.63 points to finish at 2,199 and the DSE Shariah Index (DSES) rose 2.30 points to close at 1,285.

Market operators said the recent growth in turnover and index -- the two most important indicators of the market -- in general suggests investors' confidence in the market is back amid easing virus worries and regulatory initiatives.

The investors are hopeful about the market amid lower return from money market, easing virus worries coupled with extension of margin loan cap implementation time for another six months, said a merchant banker.

"Investors are seeing the stock market as a better investment option as confidence restoring riding on the satisfactory earning declarations amidst declining Covid-19 infection cases," he said.

He noted that the market rally came on the back of regulatory moves, positive macroeconomic indicators like remittance, foreign reserve, exports growth coupled with better than expected earning declarations.

"Continuous growth in turnover pushed investors' confidence high and high volume suggested that institutional investors were largely active in the market," he added.

Beating worries of the coronavirus, investors' buying appetite in the large-cap banking sector as bank stocks deemed to be at this lucrative price level, commented EBL Securities.

The stockbroker noted that the investors' enthusiasm in bank, life insurance, engineering, food, general insurance and telecom sectors helped the DSEX to remain upbeat.

Most of the sectors posted gain with banking saw the highest return of 2.40 per cent, followed by engineering with 1.90 per cent, food 1.80 per cent, general insurance 1.50 per cent and telecom 1.10 per cent.

On the other hand, textile, cement, power and financial institutions sectors faced correction of 2.50 per cent, 0.90 per cent, 0.80 per cent and 0.70 per cent respectively.

Losers, however, took a modest lead over the gainers, as out of 365 issues traded, 175 declined, 142 advanced and 48 issues remained unchanged on the DSE trading floor.

Beximco - the flagship company of Beximco Group- continued to dominate the turnover chart with shares worth about Tk 1.13 billion changing hands, followed by Robi (Tk 636 million), Saif Powertec (Tk 531 million), Prime Bank (Tk 530 million) and IFIC Bank (Tk 468 million).

Asia Insurance was the day's top gainer, posting a 9.91 per cent gain while Tosrifa Industries was the worst loser, losing 8.12 per cent.

A total number of 272,940 trades were executed in the day's trading session with a trading volume of 591.21 million shares and mutual fund units.

The market-cap of DSE also rose to Tk 4,964 billion on Monday, up from Tk 4,931 billion in the previous session.

The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index - CASPI -rising 73 points to settle at 16,922 and the Selective Categories Index - CSCX gaining 46 points to close at 10,202.

Of the issues traded, 146 declined, 125 advanced and 29 issues remained unchanged on the CSE.

The port city's bourse traded 43.31 million shares and mutual fund units with turnover value of Tk 1.15 billion.

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