Stocks turnover hits 7-month high

Turnover on the Dhaka Stock Exchange surged by around 40 per cent to Tk 1,477 crore yesterday thanks to the increased participation of general investors, who were optimistic about a potential bull run.

The DSEX, the benchmark index of the premier bourse in Bangladesh, rose 40 points, or 0.64 per cent, to hit 6,300. With this, the index has risen by a total of 151 points in the last five trading sessions.

As the index is in a rising trend, investors started taking positions in lucrative stocks in hopes that the market will continue its upward trend, according to a stockbroker.

Besides, the government's announcement that local fuel prices would be reduced in line with their declines in the global markets has had a positive impact on investor confidence, he said.

"Fuel prices have a major impact on the operations of listed companies, so investors are hopeful that a reduction in their production cost will positively influence their performance."

The investors' confidence has received a boost after the government assured that it would adjust local fuel prices in accordance with the global market while the central bank is trying to curb the dollar price volatility

The stockbroker went on to say that many shares have become lucrative amid a bear run in the market for the past few months.

On the premier bourse, 164 stocks advanced, 117 declined, and 99 remained unchanged.

Both the DS30, the blue-chip index, and the DSES, the shariah-based index, gained 21 points and 7 points respectively.

The Dhaka stocks sustained an upward rally with increased turnover for the fifth consecutive session to exceed the 6,300-mark as optimistic investors continued their buying spree amid growing confidence in the market, International Leasing Securities said in its daily market review.

The investors' confidence has received a boost after the government assured that it would adjust local fuel prices in accordance with the global market while the central bank is trying to curb the dollar price volatility.

So, investors significantly increased their participation in the market, which was reflected in the turnover, it added.

Among the sectors, ceramics gained 2.2 per cent, paper rose 2.1 per cent and life insurance advanced 1.4 per cent. Jute dropped 1.2 per cent, cement fell 1 per cent and IT shed 0.6 per cent.

Investor activity was mostly focused on the textile (17.2 per cent), miscellaneous (14 per cent), and pharmaceutical (11.8 per cent) sectors.

A merchant banker said the main participation in the stock market still comes from general investors instead of institutional investors, who were panicked by the continuous fall in major indices in the recent past.

They sold their shares mainly due to the fear caused by weak economic indicators, such as higher inflation and the fall of the local currency's value against the US dollar.

"The tension is not over yet though, so they are still not taking part actively," he added.

Fareast Islami Life Insurance topped the gainers' list, rising 10 per cent while Orion Infusion, Samata Leather, Metro Spinning Mills, and Union Capital also rose significantly.

First Finance shed the most, eroding 5 per cent. Kay & Que, Sunlife Insurance, Monno Fabrics, and Intech Ltd were also on the top losers' list.

Beximco Ltd became the most-traded stock with shares worth Tk 126 crore changing hands, followed by Orion Pharmaceuticals, Delta Life Insurance, LafargeHolcim Bangladesh, and Bangladesh Shipping Corporation.

The Chittagong Stock Exchange (CSE) also rose yesterday. The Caspi, the all-share price index of the port city bourse, added 122 points, or 0.66 per cent, to end the session at 18,512.

On the CSE, 144 stocks rose, 81 fell, and 83 did not see any price movement.