Home ›› 27 Apr 2023 ›› Stock
The Dhaka Stock Exchange (DSE), the country’s premier bourse, is on the way to becoming vibrant as investors started to return to the market amid the ease of the macroeconomic strains and efficacious corporate earnings.
Turnover, a crucial indicator of the market, hit Tk 765 crore on Wednesday, the 3rd highest this year so far.
Earlier, the prime bourse saw the highest turnover of Tk 934 crore on January 18, followed by Tk 900 crore on January 17 in the year.
Stockbrokers and analysts said after a long spell of market volatility, a sentiment grew among investors that the market would turnaround, enticing them to put fresh funds in the market in hope of good returns.
Besides, most listed companies were now presenting healthy corporate earnings in the latest quarter, raising further hope about the market recovery, they added.
Moreover, the global macroeconomic situation is now on the way to a recovery path form what the Russia-Ukraine war had cast a shadow over the global economy and supply chain, analysts say.
Following the growing optimism, investors who once had been on the sidelines, now began to take fresh bets into equities, several stockbrokers said.
Apart from this, many investors how did not liquidate their holdings to avoid losses in the past, were now offloading them amid the recent market recovery, making the turnover buoyant, they added.
After offloading poor stocks, they were injecting funds into sector-specific good stocks, another reason to help the market turnover reach an excellent height, as per stockbrokers’ market reviews.
Stock market insiders also said the securities regulator, to lend a hand to the depressed shares of fundamentally good companies with decent paid-up capital, recently eased the margin regulations. As a result, a scope has been created for good fundamental stocks to rise, inspiring investors to put funds into those shares.
Bangladesh Merchant Bankers Association (BMBA) President Sayadur Rahman said the BSEC made the right move this time as many large-cap and mid-cap stocks of fairly stable companies started to reach lucrative price levels. Allowing more fund flow there would also help market vibrancy.
The DSEX, the benchmark index of the capital bourse, rose 2.8 points to settle at 6,266 on Wednesday against 6,264 in the previous trading session.
Among other indices, the DSES, the Shariah-based index, added 1.27 points or 0.09 per cent to 1,359, while the DS30, the blue-chip index, dropped 0.28 points or 0.01 per cent to 2,213.
The market witnessed a slight volatility during the mid-session since the recent price appreciation of selective scrips enticed cautious investors to secure short-term gains, said EBL Securities, a stockbroker, in its daily market review.
Buoyant investors, however, continued to chase down the rallying scrips with positive expectations from the upcoming corporate earnings disclosures, it added. The food and allied sector topped the turnover chart with a contribution of 16.9 per cent of the total turnover of the DSE, followed by travel (13.0 per cent) and IT (11.8 per cent).
Unique Hotel & Resorts PLC was the day’s most traded stock with Tk 61.1 crore worth of its shares changing hands, fol-lowed by Eastern Housing Limited (Tk 54.6 crore), and Olympic Industries Ltd (Tk 36.9 crore).
Most sectors displayed positive returns at the DSE, with the jute sector posting the highest gain of 5.9 per cent, followed by ceramic (1.1 per cent) and cement (0.8 per cent).
On the other hand, the life insurance faced the highest loss of 0.7 per cent, followed by tannery (0.6 per cent) and miscella-neous (0.4 per cent).
Apex Foods Limited topped the DSE’s gainer list with a return of 8.7 per cent, while Bangladesh Lamps Limited was the day’s worst sufferer with a loss of 6.3 per cent. Out of the issues traded, 64 stocks surged, 72 scrips declined and 256 re-mained securities did not see any movement on the DSE trading floor.
The port city bourse, CSE, also settled on green terrain, with its two major indices – the selected indices (CSCX) and the all-share price index (CASPI) – advanced by 4.7 points and 10.8 points respectively.
