Dhaka stocks gained on Tuesday amid active participation of the large-scale investors with the turnover of the bourse crossing Tk 900 crore after four and a half months.
DGEN, the benchmark general index of Dhaka Stock Exchange, gained 1.30 per cent, or 56.73 points, to close the day at 4,413.90 points.
Turnover of the bourse increased to Tk 939.75 crore on Tuesday from that of Tk 759.67 crore in the day before.
Tuesday’s turnover was the highest since April 18 when the DSE turnover was Tk 991.53 crore.
Market operators said the stock market was on an upward trend for more than one month as the institutional investors and large-scale individual investors became active.
They said that the Padma bridge loan hope again dominated the market on Tuesday as there was a rumour at the market that the government might take some steps to comply with the World Bank’s conditions for $1.2 billion loan.
A prolonged downtrend had pushed the DSE turnover to as low as Tk 115.70 crore on July 9 which was the lowest since December 17 of 2008 when the turnover was Tk 109.03 crore.
The turnover of the bourse swelled to over Tk 3,200 crore on December 5 in 2010 before the market crashed in 2011.
Market insiders said retail investors went on a buying spree on Tuesday while some large-scale investors sold bulk amount of shares.
‘That was why the price index did not rise in proportion with the increase in the turnover,’ said a senior DSE official.
He said that the big market players seemed cashing on the newly found confidence of the retail investors as the recent rise in the market index was dominated by a few number of shares.
‘The shares mostly traded and gained sharply during the recent uptrend are newly-listed shares and the investors don’t know much about their business prospect,’ he said.
‘Moreover, the financial strength of those companies also can not justify such a sharp increase in their share prices,’ he said.
Telecommunications was the only losing sector on Tuesday that declined by 0.52 per cent.
Power gained the most—by 2.77 per cent, followed by non-bank financial institutions that gained 2.74 per cent.
Pharmaceuticals gained 0.74 per cent and banks gained 0.51 per cent on the day.
Of the 270 issues traded on Tuesday, 188 advanced, 66 declined and 16 remained unchanged.
Titas Gas topped the list of turnover leaders on the day with its shares worth Tk 92.44 crore changing hands.
The other turnover leaders were United Airways, Bangladesh Submarine Cable Company, Saiham Cotton Mills, Unique Hotel, Keya Cosmetics, Jamuna Oil, RN Spinning Mills, MI Cement and Aamra Technologies.
Courtesy of New Age
