Stocks turnover soars to two-month high

Major indices of the domestic stock market kept rising while turnover of the Dhaka Stock Exchange (DSE) soared to a nearly two-month high yesterday thanks to the increased participation of general investors.

The DSEX, the benchmark index of the country's premier bourse, climbed 85 points, or 1.38 per cent, to close at the trading session at 6,249.

Turnover of the DSE, a key indicator of market performance, ascended 28 per cent to Tk 1,183 crore, up from Tk 921 crore the previous day.

This is the highest turnover since May 10, when it was Tk 1,258 crore.

Both the blue-chip index, DS30, and shariah based index, DSES, rose by 30 points and 15 points respectively. Of the stocks traded at the DSE, 290 advanced, 36 declined and 56 were unchanged.

Trading in the stock market has increased again as general investors are confident that the indices will not fall further and so, they are buying stocks. However, institutional investors are not making any purchases for now, according to a stockbroker.

"Besides, some institutional investors and foreign investors are trying to sell shares in many cases," he said, adding this because they do not like interventions in the price mechanism, such as the recently reinstated floor price.

Tamijuddin Textile Mills topped the gainers list that, rising 9.97 per cent, while the Bangladesh Industrial Finance Company, Malek Spinning Mills, Desh General Insurance and Delta Life Insurance also made significant advances.

Envoy Textiles shed the most, eroding 3.94 per cent, while Information Services Network, Phoenix Finance First Mutual Fund, MBL First Mutual Fund, and Tosrifa Industries also featured among the top losers.

Beximco Ltd became the most traded stock with shares worth Tk 90 crore changing hands followed by Fortune Shoes, Delta Life Insurance, Sonali Paper and Board Mills, and Malek Spinning Mills.

Dhaka stocks sustained their upward rally for the third consecutive session as optimistic investors continued their buying spree amid growing confidence in the market, International Leasing Securities said in its daily market review.

Investors persisted with their buoyancy in stocks as the market will not fall further due to the floor price mechanism and their higher participation was reflected in the turnover, it added.

All the sectors achieved price appreciation, sans food and allied which fell 0.04 per cent. Life Insurance rose 3.2 per cent, services increased 2.9 per cent and ceramics edged up 2.5 per cent to achieve the highest price appreciation.

Investor activity was mainly focused on the textile sector, capturing 22.4 per cent of the day's total turnover, followed by miscellaneous (11.1 per cent) and pharmaceuticals 8.1 per cent.

The Chittagong Stock Exchange (CSE) also rose yesterday. The CASPI, the all share price index of the port city bourse, added 206 points, or 1.13 per cent, to close the day at 18,318.

At the CSE, 193 stocks advanced, 37 fell and 67 were unchanged.