Dhaka stocks rose for the 10th session, taking the key index to a new high.
The DSE General Index, the benchmark index of the Dhaka Stock Exchange, reached a peak of 7,412 points, yesterday gaining 85 points, or 1.16 percent.
Stockbrokers however were worried about the rising trend, which in their view is “irrational”.
“There is no fundamental reason for the current upward trend,” said Md Shakil Rizvi, president of the Dhaka Stock Exchange.
“I think it’s because of a mismatch between demand and supply. Demand for shares is increasing by the day, but the supply side cannot match the huge demand,” he said.
So, he said, the regulator’s market cooling measures are turning out to be ineffective. Instead of controlling the market with margin loans or price-earnings ratio, he said, it is important to increase the supply of new shares.
The DSE chief urged the government to immediately offload its stakes in the companies already listed on the exchanges.
“Offloading of shares in the already-listed companies will not take much time, as it’s a matter of decision,” he added.
Most sectors advanced yesterday including all the financial sectors — banks, non-bank financial institutions and insurances — pharmaceuticals, cement and power.
Z-category shares however suffered a big loss on fears of being delisted. The SEC’s delisting directive also targets four securities: Apex Weaving, Monno Fabrics, Dhaka Fisheries and Padma Cement. The first three were the top three losers of the day.
Advancers beat losers 166 to 75, with one remaining unchanged on the premier bourse, which traded more than 11.70 crore shares and mutual fund units on a value of Tk 2,436 crore.
Peoples Leasing and Financial Services topped the turnover leaders with 38.18 lakh shares worth Tk 90.74 crore being traded on the floor.
Chittagong stocks rose, with the CSE Selective Categories Index gaining 118 points, or 0.85 percent, to 13,946.
The Chittagong Stock Exchange traded more than 1.45 crore shares and mutual fund units on a value of Tk 206 crore.
Of the traded issues, 124 advanced and 60 declined, with 10 remaining unchanged on the port city bourse.
UCBL topped the turnover list with 76,000 shares worth Tk 10.14 crore being traded on the port city bourse.
