DSE sees rare climb in turnover
Stocks turnover rose yesterday to the Tk 2,000 crore range, a good rarity for the Dhaka bourse over the past decade.
This important indicator of the marketplace went up 13.9 % to Tk 2,193 crore, the highest since June 28 this past year.
That day, the DSE witnessed a turnover of Tk 2,543 crore, driven by share transfers of GlaxoSmithKline to Unilever.
A good turnover of Tk 2,000 crore was first observed in the bourse in overdue 2010 and for a couple of days in 2017.
"As the deposit fee is very lower in the banking sector, some shareholders are shifting their money to the currency markets," said a high official of a respected brokerage house.
Alternatively, when the market goes up, persons gain confidence and funds flow in, he explained, adding that the marketplace had already gained confidence.
But investors have to be cautious otherwise they'll incur losses, drying up the marketplace again, he added.
The DSEX, the benchmark index of the DSE, rose 33.36 tips, or 0.59 % to 5,652.32 yesterday.
Among 362 companies, 157 advanced, 142 declined and 63 remained same.
As the marketplace has been uplifted to a posture not witnessed for many years, lots of investors got the opportunity to sell off shares that they had invested in a long time ago, stated Mohammed Rahmat Pasha, CEO of UCB Capital Management.
They are selling shares and purchasing new scripts, so turnover rose, he said.
A few of the shares being traded have been stuck for being deemed negative collateral, Pasha said, adding that these were buying new shares too. "This is a good side of the marketplace now."
Banks are trading their funds in to the currency markets because they found it to become more lucrative than lending, said a good merchant banker.
Similarly, the difference between deposit fee and lending fee is leaner and on the other, the business environment continues to be challenging as a result of aftermaths of the pandemic, he said.
Already, some banks used a Bangladesh Mortgage offer to create funds of Tk 200 crore for buying the currency markets, the merchant banker added.
The banks must pay 5 per cent interest for the fund and the credit tenure will be until February 2025.
The loan providers will be allowed to show the fund as special investment, that will not fall within the purview of the banks' currency markets exposure as high as 25 % of their capital.
AIBL First Mutual Fund topped the gainers' list, rising 10 %, followed by Vanguard SML Rupali Lender Balanced Fund, Zeal Bangla Sugar Mills, GBB Electric power and Crystal Insurance.
Beximco was first the most traded share, well worth Tk 253 crore, followed by Beximco Pharmaceuticals, LankaBangla Financing, LafargeHolcim Bangladesh and IFIC Lender.
BD Financing shed the most, losing 7.74 per cent, accompanied by GQ Ball Pen, Sonar Bangla Insurance, Sonali Ansh and JMI Syringes.
The port metropolis bourse also rose yesterday. The benchmark index of the Chittagong Stock Exchange, CSCX, rose 60 factors, or 0.62 %, to stand at 9,871.
Of the 291 stocks to witness trade, 147 rose, 104 fell and 44 remained unchanged.
