DSE turnover up 53pc on BSEC move

Stocks in the Dhaka bourse returned to the black yesterday on falling by a massive extent for the past two days while turnover rose 53 per cent.

The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), rose 47 points, or 0.73 per cent, to reach 6,530 at the end of the day.

Both the DS30, the blue-chip index, and DSES, the Shariah-based index, went up by 26 points and 14 points respectively.

Turnover of the DSE also increased 53 per cent to Tk 599 crore from that the previous day.

Market analysts say the market and turnover soared as some of the institutional investors responded to a Bangladesh Securities and Exchange Commission (BSEC) letter to stockbrokers last Monday urging them to increase their participation in the market.

The main bourse of the country bounced back after a two-day slump as the bargain hunters exhibited an interest in making sector-wise purchases, said International Leasing Securities in its daily market review.

The investors got back their confidence for the BSEC proposal for brokers, dealers, merchant bankers and asset management companiesto take initiatives to make fresh investments through their own portfolios, it said.

Meanwhile, the turnover also increased significantly due to the active participation of the optimistic investors.

With the recent fall of the index, many stocks had been downed to their lowest in a year which lured some investors into participating in trade, said a stockbroker.

On the other hand, several listed companies disclosed some good news which attracted investors and these stocks rose. As the companies are based on big capital, it positively impacted the index, he added.

Bangladesh Submarine Cable Company announced on Monday that it would increase its planned investment to connect to a third submarine cable by 25 per cent to avail double the bandwidth.

With Tk 870 crore, the company will now get 13,200 Gbps from the South East Asia–Middle East–Western Europe 6 (SEA-ME-WE 6) consortium.

Yesterday, stocks of the company rose 6 per cent to Tk 220 at the DSE.

Stocks of Doreen Power Generations and Systems soared 7.60 per cent to Tk 78 on news going public that its profits had jumped 54 per cent in the first nine months of financial year 2021-22.

The power producer logged consolidated profits of Tk 134 crore between July 2021 and March 2022 while it was Tk 87 crore during the same period in the previous financial year.

Among the sectors, fuel and power rose 1.8 per cent and ceramic 1.6 per cent. According to the turnover, investors' attention was mainly concentrated on miscellaneous (15.6 per cent), pharmaceuticals & chemicals (10.8 per cent) and bank (8.8 per cent).

At the DSE, 195 stocks advanced, 132 declined and 51 remained the same.

JMI Hospital Requisite Manufacturing topped the gainers' list with a rise of about 10 per cent. The Doreen Power Generations and Systems, Janata Insurance Company, IBN SINA Pharmaceutical Industry and Bangladesh Submarine Cable Company also saw major gains.