Stocks rise as turnover soars to Tk 680 crore

Staff Correspondent

Dhaka stocks increased marginally on Thursday, the second trading session in a row, with the turnover hitting fresh eight-month high riding on investors’ increased participation on the trading floor.
The key index of Dhaka Stock Exchange, DSEX, increased just 0.09 per cent or 4.55 points, to finish at 4,695.18 points, the highest after 4,697 points on January 19, 2016.
Turnover of the bourse also increased to Tk 681.60 crore on Thursday, the highest since Tk 720.72 core turnover on January 19 this year, when the market was on the peak of the year.
Increased turnover of the bourse suggest an increase of investors’ participation on the trading floor that was much expected in the context of the capital market since the market crashed in 2010-11, stockbrokers said. Turnover of the bourse has been on the rise for last couple of months.
A DSE director said that diversion of funds to the capital market from banking sector could be the reason behind the gradual rise in turnover of the bourse.
Unattractive interest rate on deposits in banks became a major reason for the diversion of funds to the capital market, he said.
Aside the reason, investors’ increased confidence on the market was another reason that prompted them in increasing participation on the trading floor, he said.
On the sectoral front, share prices of major scrips of different sectors finished mixed excluding the non-bank financial institutions as prices of 20 out of 23 NBFIs’ shares increased on the day.
DS30, the blue-chip index of the bourse, however, fell by 0.03 per cent or 0.69 points, to close at 1,778.70 points on Thursday.
The Shariah index, DSES, also fell 0.02 per cent or 0.23 points, to close at 1,125.86 points.
‘Stocks got off to a constructive start on Thursday morning, but pulled back in the afternoon, ending the session on a flat note,’ said LankaBangla Securities in its report.
‘Nonetheless, market breadth was favorable, as winners were ahead of losers on Thursday,’ it said.
‘Among the major daily news, Bangladesh has moved up one notch to rank 106th among 138 countries in the Global Competitiveness Index in 2016 mainly on better performance in basic requirements such as infrastructure and institutions,
but the country is stuck in lower-end segment of the index,’ it said.
Doreen Power Generation and Distribution Systems led the turnover chart with its shares worth Tk 20.89 crore changing hands.
MJL Bangladesh, LankaBangla Finance, City Bank, Bangladesh Building Systems, BATBC, Lafarge Surma Cement, Yeakin Polymer, Bangladesh Submarine Cable Company and Square Textiles were the turnover leaders.

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