The turnover on Dhaka Stock Exchange (DSE) surpassed Tk 10-billion-mark after eight months on Tuesday thanks to low interest rate on banks' deposit.
The turnover, a crucial indicator of the market, stood at Tk 10.88 billion on the country's premier bourse, climbing further by 21 per cent over the previous day's mark of Tk 9.01 billion.
It was the biggest single-day transaction in last eight months since November 21, 2017, when the turnover totaled a record Tk 10.91 billion.
Brokers said low interest rates on bank deposits coupled with dividend expectations of June-ending companies prompted the investors to take position in stocks, taking the turnover to the eight-month high.
The private commercial banks and financial institutions were working on bringing down the lending and deposit rates although they had decided to do it with effect from July 1.
"Turnover hitting the highest in 2018 as the bargain hunters took position on different stocks anticipating positive year-end declarations," said an analyst.
He noted that the prospective deposit rate cut by banks and financial institutions encouraged the investors to divert their fund to the capital market.
Along with increasing the turnover, DSEX, the prime index of the Dhaka Stock Exchange (DSE), also went up by 30 points or 0.56 per cent to settle at 5,371.
"The positive change in the index is mainly driven by significant positive movement in the engineering, financial institutions and power sectors," said LankaBangla Securities.
The engineering sector posted the highest gain of 2.32 per cent, followed by financial institutions with 1.70 per cent and power 0.90 per cent.
According to International Leasing Securities, turnover hitting the year's highest as optimistic investors continued to inject fresh funds into stocks anticipating positive year-end earnings declaration.
The two other indices also edged higher. The DS30 index, comprising blue chips, advanced 1.08 points to settle at 1,911 and the DSE Shariah Index gained 2.76 points to close at 1,271.
"The investors' sentiment on June-closing stocks remained buoyant amid positive expectations," commented EBL Securities.
Telecommunication and banking sectors witnessed correction of 2.10 per cent and 0.70 per cent respectively.
Of the traded issues, 183 closed higher, 99 ended lower with 57 issues remaining unchanged on the DSE trading floor.
The newly listed Bashundhara Paper Mills topped the turnover chart with 2.77 million shares worth Tk 458 million changing hands, closely followed by BBS Cables, Ratanpur Steel Re-rolling Mills, Pacific Denims and Paramount Textile.
The Peninsula Chittagong was the day's highest gainer, posting a gain of 10 per cent while the Aramit was the worst loser, losing 6.67 per cent.
The port city bourse CSE also ended higher with its All Share Price Index - CASPI - advancing 87 points to settle at 16,548 and the Selective Categories Index - CSCX -gaining 53 points to finish at 10,012.
The gainers beat losers as 152 issues closed higher, 73 ended lower and 25 remained unchanged on the CSE.
The port city bourse traded 19.52 million shares and mutual fund units worth more than Tk 621 million in turnover.
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