Stocks turnover crosses Tk 1,200cr

Turnover at Dhaka Stock Exchange (DSE) reached over Tk 1,200 crore yesterday after two and a half months thanks to an increase in the participation of investors in the market following the Eid-ul-Fitr vacation.

The DSEX, the benchmark index of the DSE, rose 28 points, or 0.42 per cent, to 6,698 at the end of the day. This is the second consecutive days' rise for the index.

The DSE's turnover rose around 24 per cent to Tk 1,208 crore from that the previous day. On February 16, it was Tk 1,213 crore.

Normally, the stock index adopts a rising trend after an Eid vacation as people want to buy stocks to continue running their trading business, said a stock broker.

This time the stock index went down to a very low level ahead of Eid-ul Fitr, so general investors went on a buying spree in the last two days, he added.

At the DSE, 242 stocks advanced, 77 declined and 61 remained unchanged.

The stocks ended in the positive for the second consecutive day with a rise in the turnover as investors showcased interest and placed fresh bets on sector-specific issues, said International Leasing Securities in its daily market review.

Flows of institutional funds to the market created a bullish vibe among the investors, causing their participation to increase significantly, it said.

All the sectors achieved price appreciations, albeit jute which dropped 0.3 per cent. Ceramics rose the most, by 5.8 per cent, while financial institutions by 3.1 per cent.

As per the turnover, investors' attention was mainly concentrated on pharmaceuticals and chemicals (13.9 per cent), engineering (10.8 per cent) and miscellaneous (9.3 per cent).

Stock investors are divided over two scenarios – while the country's remittances are rising alongside export earnings, the overall economic situation around the globe is not supportive of investments, said a merchant banker.

The central banks of Germany and England have already expressed apprehensions over another recession in the world, so it may have an impact on the Bangladesh stock market too, he said.

So, some of the institutional investors were not optimistic enough to purchase stocks at this moment, he added.

The merchant banker recommended investing in good stock to safeguard funds in case any tough period ensues.

ACI Formulations topped the gainers' list, with a rise of about 9.99 per cent rise. The National Housing Finance and Investments, Shinepukur Ceramics, National Feed Mills, and Eastern Housing also saw major gains.

Imam Button Industries shed the most, with a drop of 4.9 per cent. ICB Islamic Bank, Pubali Bank, Genex Infosys and Coppertech Industries were among those suffering heavy losses.

Fortune Shoes became the stock to be traded the most, with shares worth Tk 64 crore changing hands, followed by JMI Hospital Requisite Manufacturing, IPDC Finance, Orion Pharma and Shinepukur Ceramics.

Chittagong Stock Exchange (CSE) also rose yesterday. The CASPI, the main index of the CSE, went up 44 points, or 0.22 per cent, to close the day at 19,639.

Of the 302 stocks to undergo trade, 178 rose, 92 fell and 32 did not see any price movement.