The daily trade turnover on the Dhaka Stock Exchange (DSE) soared to a fresh high in about 11 years on Monday, as the buoyant investors put fresh funds on stocks after the market regulator extended credit facilities further to the investors.
The Dhaka bourse also saw fresh records in three indices, market capitalisation and trade volumes.
Turnover, a crucial indicator of the market, stood at Tk 29.54 billion on the country's premier bourse, in a further buck by 11 per cent over the previous day's tally of Tk 26.62 billion.
It happened to be the biggest single-day transaction in the DSE after about 11 years since December 5, 2010, when daily turnover recorded the all-time high of Tk 32.49 billion.
Monday's daily turnover was also the fourth highest single-day transaction in the DSE's history. The bourse witnessed the highest turnover of Tk 32.49 billion on December 5, 2010, the second highest turnover was Tk 32.08 billion on October 31, 2010, and the third highest turnover was Tk 31.79 billion on December 2, 2010.
Along with the rising turnover, DSEX, the DSE key index, also rose 49.53 points or 0.73 per cent to settle at 6,749 - the highest since its inception more than eight years back on January 27, 2013.
Two other indices - the DSE 30 Index and the DSE Shariah Index (DSES) - followed the suit to close at their historical highs of 2,427 and 1,468, after rising 0.05 point and 9.79 points respectively.
The DSE launched the DS30 index on January 27, 2013 with a base point of 1,460.30, while the DSES was introduced on January 20, 2014 with a base point of 941.27.
The market capitalisation of the prime bourse also hit a fresh all-time high of Tk 5,490 billion on Monday, surpassing the previous high of Tk 5,478 billion recorded just three days back.
Total number of trade volume also reached to a record high of 1.01 billion, surpassing the previous high of 970.77 million recorded just a week earlier.
Market analysts said the investors welcomed the securities regulator's latest move and remained optimistic that the move would boost supply of liquidity in the capital market.
The Bangladesh Securities and Exchange Commission (BSEC) on Thursday revised the limit of margin loan facilities based on the DSE key index - at a maximum rate of 1:0.80 when the DSEX is below 8,000.
In other words, a maximum margin loan of Tk 80 can be provided against a client's own investment of Tk 100.
The buoyant investors kept their buying spree on sector-wise stocks, as the securities regulator allowed the investors to avail credit facilities as per the existing margin loan ratio until the key index remains below 8,000 points, said a merchant banker.
The upbeat investors are putting fresh funds, particularly on stocks of banking and financial institution sectors, amid reopening of economic activities, he noted.
"As the deposit rates are very low in the banks, many investors are diverting some of their funds from the money market to the equity market."
The investors are rushing to the capital market amid lower returns from the money market, limited scopes of investment in other instruments, and the securities regulator's latest move to extend credit facilities to the investors, said an asset manager.
He noted that stocks climbed fresh records almost every day, as more and more investors joined the rally with an expectation of better return from the bullish market.
However, the BSEC should strictly monitor the situation, so that no one could take advantage of it, he opined.
The investors showed buying interest in selective stocks, particularly of textile, banking and non-bank financial institution sectors, amid high expectation, commented EBL Securities, in its regular market analysis.
The stockbroker noted that the ongoing buying rush is keeping the market buoyant, as both the index and the turnover are surging.
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