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DSE daily turnover surpasses Tk 16b, on enthusiasm in bank stocks

Key index adds 243 pts in six days in a row

FE REPORT | February 06, 2024 00:00:00

Stocks witnessed yet another upbeat session on Monday, with turnover surpassing Tk 16 billion-mark for the first time in more than 16 months, as buoyant investors put fresh bets on heavyweight bank shares.

Turnover, a crucial indicator of the market, stood at Tk 16.55 billion on the country's premier bourse after a 5 per cent increase from the previous day.

It happened to be the biggest single-day transaction since September 25, 2022 when the turnover was recorded at Tk 18.10 billion.

Aligned with the rising turnover value, DSEX, the benchmark index of the Dhaka Stock Exchange, went up 42 points or 0.67 per cent to settle at 6,322. The DSEX recovered 243 points in the past six consecutive sessions.

Among the top 10 index contributors, five were bank stocks. National Bank, BRAC Bank, Southeast Bank, IFIC Bank, and United Commercial Bank contributed more than one-fourth of the day's index gain.

Enthusiastic investors showed an enhanced buying appetite in bank stocks ahead of dividend declarations, as the price of many bank stocks were still at a lucrative level.

Subsequently, 30 banks saw price hikes out of 35, with three remaining unchanged and two experiencing correction.

The recent growth in turnover and index -- the two most important indicators of the market -- suggests that investors are regaining confidence in the market.

According to EBL Securities, stocks surged as investors found attractive investment opportunities following recent corrections.

"Substantial price appreciation on selective large-cap issues played a significant role in extending the upward trend of the core index for consecutive sessions."

The persistent growth in turnover boosted investors' confidence. It also suggests that institutional investors were largely active in the market after the floor price removal.

Two other indices also stayed upbeat. The DS30 Index, which consists of blue-chip companies, soared more than 8 points to 2,133, while the DSES index, which represents Shariah-based companies, rose almost 6 points to 1,376.

A majority of the stocks saw price surge, as out of 395 issues traded, 261 closed higher, 93 ended lower and 41 remained unchanged on the DSE trading floor.

Most sectors posted gain with financial institutions securing the highest return of 4.2 per cent, followed by engineering, life insurance and travel & leisure.

Orion Infusion became the most-traded stock with shares worth Tk 773 million changing hands. It was followed by BD Thai Aluminum, Fu-Wang Food, Khulna Printing and Karnaphuli Insurance.

Global Islami Bank was the day's top gainer, soaring 10 per cent, while Miracle Industries was the worst loser, shedding 4.86 per cent.

The Chittagong Stock Exchange (CSE) also ended sharply higher with its All Share Price Index (CASPI) rising 187 points to settle at 18,032 and the Selective Categories Index (CSCX) gaining 111 points to close at 10,794.

The port city bourse saw transactions of 11.06 million shares and mutual fund units, leading to a turnover volume of Tk 191 million.

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