DSEX keeps rising, turnover declines

The daily turnover at the Dhaka Stock Exchange fell on Tuesday after record rallies in the last few days, while key index DSEX continued to rise for the fourth consecutive session.

The DSEX reached new high of 6,787 points with a gain of 38.24 points or 0.56 per cent on Tuesday. This is the highest position since the inception of the DSEX in 2013.

However, the total turnover declined by 9.49 per cent at the DSE as shares worth Tk 2,673 crore were traded on Tuesday, which was Tk 2,953 crore on the previous day.

The bank sector dominated the turnover chart covering 19.51 per cent of the total turnover.

The market capitalization of the Dhaka bourse on Tuesday stood at the historically highest level of Tk 551,200 crore.

According to the market insiders, the extension of the ceiling to provide margin loans at 1:0.8 ratio up to 8,000 points strengthened the investor’s confidence in the ongoing upward momentum of the index.

Besides, Bangladesh Bank’s issuance of bills worth Tk 8,675 crore and the directive to increase interest rate on deposits around inflation in a bid to absorb the excess liquidity in the banking system may channel some of the funds to money market from the capital market.

On Tuesday, bank (19.51 per cent), textile (15.42 per cent), and financial institution (12.69 per cent) sectoral issues were the most traded stocks on the trading board.

EBL Securities, in its daily market commentary, noted that most of the sectors observed declining performance, out of which general insurance (4.0 per cent), bank (3.6 per cent), and life insurance (2.4 per cent) have exerted the most return while services (-2.1 per cent), miscellaneous (-2.0 per cent), and textile (-2.0 per cent) observed the most price correction.

Out of the 374 issues traded, 192 advanced, 174 declined, and 8 remained unchanged.

Meanwhile, the port city bourse, CSE, also settled in green terrain.

The selected indices (CSCX) and All Share Price Index (CASPI) advanced by 73.1 points and 118.2 points respectively during the day’s trading period.