Stocks inch up; turnover hits six-week high

Dhaka shares finished marginally higher on Thursday, while trading was boosted with turnover hitting a six-month high amid optimism of increased fund flow backed by the regulatory efforts.

The benchmark DSEX index edged 4 points or 0.06 per cent to settle at 6,757 after the marginal fall in the previous session.

Turnover stood at Tk 1,116 crore, the highest since February 20, 2022, when it was Tk 1,140 crore and an increase of almost 40 per cent over the previous session. Tannery, engineering, and paper together made up more than 35 per cent of the total turnover.

“Equity indices of the capital bourse inched upwards a bit driven by increased participation as regulators’ efforts are spurring confidence among investors,” said EBL Securities in a note.

Investors expect a positive outcome from the upcoming coordination meeting, as the BSEC intends to boost market liquidity through collaboration with market intermediaries, it said.

The market got pace a day after the Bangladesh Securities and Exchange Commission (BSEC) held a meeting with stakeholders to sort out a mechanism to enhance cash flow to the market.

After the meeting, the regulator said a special fund worth Tk 10,000 crore will be pumped in the market.

However, analysts say the artificial measures might only temporarily offset the negative sentiment but it is not sustainable in the long run.

“Yet, volumes are the strength of the stock market,” said a stockbroker. “The rise in turnover suggests investor confidence is on the rise,” he said.

Among the sectors, investors favoured the non-banking financial institution stocks led by IPDC soaring more than 9 per cent. The insurance sector faced correction, ending its rally seen in the previous session.

Out of the 385 issues traded, 134 advanced, 183 declined, and 68 remained unchanged.

On the debut trading day, JMP Hospital Requisite’s shares were frozen at the upper limit circuit at 10 per cent.

The port city bourse, CSE, however, settled in red terrain. The selected indices (CSCX) and All Share Price Index (CASPI) have declined by 15.5 points and 26.5 points respectively.