The key index of Dhaka Stock Exchange – DSEX – on Sunday crossed the 7,000-point mark for the first time since its inception in 2013 as optimistic investors continued their buying spree amid the growing confidence in the market.
The key index gained 71.8 points or 1.03 per cent on the day to climb at the new high of 7,053 points alongside the market capitalisation of Dhaka bourse that stood at the historically highest level of Tk 5,69, 284 crore.
The market turnover has increased by 16 per cent to Tk 2,868 crore over the last session as the investors were taking positions while some others were rebalancing their portfolios.
At the day’s end, DSES and DS30 added 19.98 points and 37.13 points respectively to their previous day’s level.
Of the total 375 issues traded, 208 advanced, 130 declined and 37 remained unchanged on the Dhaka bourse on the day.
In its daily market commentary, the International Leasing Securities said the stock market remained bullish for the last four consecutive sessions amidst the enthusiastic participation of the investors who are more confident and buoyant to place fresh bets anticipating positive momentum ahead.
According to EBL Securities, the investor’s buoyancy led by positive regulatory measures has added strength to the capital market to hold its firm position.
BSEC Chairman Professor Shibli Rubayat Ul Islam said the commission is working to ensure good returns for investors as well as good corporate governance in the market to regain their confidence in the stock market.
The capital market is expected to extend the ongoing upward momentum due to the event of prevailing excess liquidity and dismal return in the money market, he pointed out.
Besides, investors’ participation was agile on the bourse and the total turnover has significantly advanced by 15.93 per cent.
Stock market insiders observed that investors have been encouraged as the securities regulator approved revised public issue rules extending general investors quota in initial public offering.
Chittagong Stock Exchange (CSE) Chairman Asif Ibrahim told The Business Post, “BSEC has taken many steps to restructure and reform the market. More multinational and state-owned companies should be listed to strengthen the capital market. Tax policy for the listed companies should be made more attractive to attract foreign brokerage houses to trade in our market.”
Investors’ positive expectations towards the capital market remained persistent, primarily backed by favourable macroeconomic outlook and continuous efforts by the BSEC, according to stock analysts.
UCB Stock Brokerage Limited in its daily market review said among major sectors, Tannery, Jute, and Paper & Printing sectors experienced price appreciation while General Insurance, Life Insurance and Mutual Fund faced correction.
The engineering sector dominated the turnover chart covering 11.19 per cent of total turnover, it said.
Beximco Limited topped the turnover list followed by LafargeHolcim, Beximco Pharma, LankaBangla Finance and Doreen Power.
ADN Telecom was the top gainer, posting 10 per cent rise while SEML FBLSL Growth Fund was the worst loser, losing 9.83 per cent.
The port city bourse, Chittagong Stock Exchange (CSE), also ended in green terrain.
The selected indices (CSCX) and All Share Price Index (CASPI) advanced by 141.2 points and 234.9 points respectively.
The turnover value was Tk 95 crore in the CSE. Out of the 327 issues traded, 198 advanced, 100 declined and 29 remained unchanged on the bourses.