FE Report
The Dhaka Stock Exchange (DSE) on Wednesday recorded turnover at its three-week high on the back of investors' increased participation in the textile sector.
The premier bourse posted a turnover of Tk 8.9 billion, 48 per cent higher than the previous session. The textile sector made the highest contribution of 23.8 per cent to the market turnover.
After the vacation of Eid-ul-Azha, the sector experienced investors' increased participation. In three out of four sessions to Wednesday, it witnessed high volumes of textile shares transacted.
However, the premier bourse went flat as investors were active on both sides of the trading fence.
After the daylong volatility, the DSE broad index DSEX closed at 6,336 points with a marginal rise of 0.03 per cent from the previous session.
"The benchmark index managed to stay afloat for the second consecutive session as investors continued their chase for particular rumor-based junk stocks in anticipation of quick gains," said EBL Securities.
A significant number of companies of the textile sector, which has the highest number of stocks, closed green.
Of the 58 companies of the sector, 25 closed marginally higher while 25 others remained unchanged on the premier bourse.
The chairman of EDGE Asset Management, Asif Khan said investors' increased participation in the textile sector does not reflect any fundamental change in the market as most of the stocks are junk stocks.
Speculative trading played a role behind the rise in turnover posted by the sector, he added.
The country's ready-made garment (RMG) sector, however, registered a double-digit export growth -- 10.27 per cent -- to USD 47 billion in FY23 while other major sectors saw their growth decline during the period.
Insiders said the export growth and the upcoming dividend declarations might have played a role in attracting investors to the textile sector.
The food & allied sector had the second highest contribution of 13.6 per cent to the market turnover, followed by engineering and life insurance.
Of 374 issues traded, 84 advanced, 111 declined and 179 were unchanged on Wednesday.
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