Fresh funds increase turnover

The capital market was in a good position this week in all aspects compared to the previous week as investors were more inclined to new investments. Transactions and indexes both increased.

Fresh funds were injected by the institutional investors due to various factors such as the floor price and calculating share purchases at cost prices by banks and financial institutions, said a market insider.

Daily turnover in the capital market increased by 37.22 per cent this week compared to the previous week.

The market remained bullish as institutional investors pumped funds into stocks taking advantage of floor prices set by the regulator a few weeks back, dealers say.

Dhaka Stock Exchange (DSE)’s flagship index, the DSEX, rose 2.42 per cent in the five-day trade. It increased by 1.82 per cent compared to the previous week.

Among the other two indexes, the DSES rose 1.34 per cent, or 18.58 points, over the previous week. At the beginning of the week, the index was at 1390 points. At the end of the week, it stood at 1409 points. The DS-30 index was increased by 1.69 per cent, or 38 points, compared to the previous week.

This week had five trading days. The latest direction to the capital market given by the Bangladesh Securities and Exchange Commission (BSEC) reduced the trading hours in the middle of the week for power savings. However, Thousands of crores of Taka were traded every day in the last five days. The transaction reached Tk 2,000 crore in two days. As a result, the average transaction was Tk 1,902 crore, up from Tk 1,386 crore the previous week.

The equity indexes of the Dhaka bourse continued their upward momentum in every trading session this week, riding on rebounded

optimism and increased participation across the bourse, propelling the key index to cross the psychological threshold of 6500-mark after nearly four months, said EBL Securities in the weekly marker note.

Some slight recovery signs on the macroeconomic front instilled confidence among the investors that led them to inject fresh funds into equities and continue buying dominance on the trading floor, it said.

Investors were active primarily in Textile (18.0 per cent), Pharmaceutical (12.3 per cent), and Engineering (11.6 per cent) sectors.

All sectors, except Tannery (-0.4 per cent), showed positive returns this week with Services sector showing the highest positive return (12.2 per cent).