DSEX rises by 1.5%, average turnover falls by 5.4%

The Dhaka Stock Exchange’s key index, DSEX, gained 92.67 points, or 1.51 per cent, and closed the week at 6,241.44 points driven by the steps taken by the central bank to stabilize the exchange rate while the local currency was significantly depreciating.

The average turnover has decreased by 5.4 per cent in this week to Tk 847 crore, as against Tk 896 crore in the previous week.

The blue-chip index DS30 gained 25.66 points and stood at 2,220.05 points. The Shariah-based index DSES rose 20.67 points and stood at 1,366.38 points.

This week, the market closed for three sessions. Market started on a positive note on Sunday. It remained positive on Tuesday. Finally, the market ended on a positive note on Wednesday.

BRAC EPL said in the market commentary, financial sectors posted mixed performance this week. General insurance had the highest gain of 2.14 percent, followed by life insurance (1.80 percent) and non-bank financial institutions (1.62 percent). Mutual Fund experienced the highest loss of 0.17 per cent followed by Bank (0.01 per cent).

Most of the non-financial sectors posted positive performance this week. Pharmaceutical booked the highest gain of 1.44 per cent followed by Engineering (0.94 per cent), Food and Allied (0.47 per cent), Fuel & Power (0.46 per cent), and Telecommunication (0.07 per cent).

The equity indices of the Dhaka stock exchange revived from its bearish mode in this week owing to the central bank’s steps to stabilize the exchange rate while the local currency was significantly depreciating, said EBL Securities in the market commentary.

The announcement of adjusting the fuel price in the local market according to the global market also played a role in changing investors’ sentiment toward optimistic direction, it said.

The Dhaka stock exchange went through recovery this week because of the reinitiation of floor pricing by the regulator, while afterward, the finance ministry’s recommendation to calculate banks’ capital market exposure at a cost price basis boosted the ongoing investors’ optimism.

The market was in a recovering trend for the last three days after the securities regulator imposed a “floor price’ on all securities on July 28.

The Ministry of Finance allowed the banks to calculate capital market exposure on a cost price basis instead of the market price in the previous week.

Meanwhile, record remittance inflow and growth in exports are some of the leading indicators that the country’s economy is recovering from its gloomy phase.

Out of the 395 issues traded, 257 advanced, 42 declined, and 89 remained unchanged on the Dhaka bourse for the week.

The port city’s stock exchange, the Chittagong Stock Exchange (CSE), also showed up this week. CSCX and CASPI rose by 1.34 per cent and 1.33 per cent respectively.