Daily turnover on the Dhaka Stock Exchange (DSE) crossed the Tk 12 billion mark on Sunday for the first time in over a year, as upbeat investors poured fresh funds into fundamentally strong stocks amid growing optimism in the market.
Turnover, a crucial indicator of the market, stood at slightly above Tk 12 billion on the country's premier bourse, up 56 per cent from the previous session's Tk 7.67 billion.
It was the biggest single-day transaction since August 14 last year, when the market turnover totalled a record Tk 12.44 billion.
Market analysts attributed the surge in trading activity to renewed investor confidence, spurred by attractive valuations of fundamentally strong and oversold stocks. Investors' sentiment remained resilient, bolstered by positive macroeconomic developments, notably rise in the foreign exchange reserves, remittance and exports.
The high-net-worth individuals were in a mood to pour fresh funds into selective stocks after seeing many stocks rallying and generating short-term returns in the past few weeks.
The yield rates on government securities continued to decline in the past three months, signalling potential easing of interest rates in the money market, said Akramul Alam, head of research at Royal Capital.
The cut-off yield, generally known as interest rate, on the 91-Day T-bills came down to 10.12 per cent on the day from 10.14 per cent of the previous level while the yield on 182-day T-bills fell to 10.29 per from 10.35 per cent on Sunday's bidding.
There is an inverse relation with the government securities' yield rate and equity market. "When the interest rate falls, the equity market gets a boost," said Mr Alam.
Looking ahead, investor activity is expected to gradually pick up, driven by ongoing improving macroeconomic indicators, he said.
Some of the investors reshuffled their portfolios ahead of earnings and dividend declaration of June-closing companies, he added.
On Sunday, the market witnessed a positive momentum right from the start with renewed buying interest on certain good stocks as investors perceived them as lucrative in the present valuation.
Currently, the country's stock market price-to-earnings (P/E) ratio is around 10, indicating that the stock market has remained attractive for investment.
With robust investors' participation, DSEX, the key index of the Dhaka Stock Exchange (DSE), went up by more than 14 points or 0.26 per cent to settle at 5,389, after losing 45 points in the past three trading days.
EBL Securities in its regular analysis said stocks demonstrated resilience with heightened market participation, carrying its rebound momentum as investors showed renewed buying interest in major stocks, although continued subdued momentum in the heavyweight bank stocks kept the rally in check.
Buyers dominated the trading floor throughout the session as invigorated market activity drew stronger investor participation, strengthening the market's upward trajectory, said the stockbroker.
The investors' buying interest in certain June-ending stocks ahead of their upcoming corporate declarations, also contributed to the market's recovery.
Price hike of selective well-performing stocks such as Beximco Pharma, Beacon, City Bank, Delta Life Insurance and National Life Insurance largely contributed to the market gain, as they jointly accounted for more than 11-point rise in the DSEX.
The blue-chip DS30 index, a group of 30 prominent companies, also gained 12 points to 2,101. However, the DSES index, which represents Shariah-based companies, saw a fractional loss of 0.81 point to close at 1,179.
However, shares of low-performing companies continued to surge, signalling potential market manipulation.
The non-performing stocks are significantly beating their industry peers nowadays that are in regular business operation, posting profits and giving dividends to their shareholders.
Alif Industries emerged as the top gainer, soaring 9.96 per cent after the company announced its plans to relocate and expand its factory to strengthen production and operational capacity.
Investors were mostly active in the textile sector, which accounted for 16.4 per cent of the day's total turnover, followed by pharma (15 per cent) and general sector (9 per cent).
Major sectors showed mixed performance. Pharmaceuticals, food, textile and general insurance saw price appreciation while banking, telecom, non-bank financial institutions, engineering, and power saw price correction.
Losers took a modest lead over the gainers as out of 400 issues traded, 190 ended lower, 184 closed higher and 26 issues remained unchanged on the DSE trading floor.
Malek Spinning Mills became the most-traded stock with shares worth Tk 378 million changing hands, followed by Beximco Pharma, Bangladesh Shipping Corporation, Beach Hatchery and Alif Industries.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index (CASPI) gaining 32 points to settle at 15, 057 while its Selective Categories Index (CSCX) rose 33 points to close at 9,252.
The port-city bourse traded 16.69 million shares and mutual fund units with turnover value of Tk 204 million.
babulfexpress@gmail.com
© 2025 - All Rights with The Financial Express
