Daily trade turnover on Dhaka Stock Exchange (DSE) scaled Tk 10-billion mark on Monday, for the first time in three months, as investors put fresh stakes on stocks.
The turnover, a crucial indicator of the market, stood at Tk 10.46 billion on the country's premier bourse, rising more than 22 per cent over the previous day's mark of Tk 8.55 billion.
It is also the biggest single-day transaction in the last three months since April 5, when the turnover totalled a record of Tk 11.15 billion.
Along with the turnover value, total market capitalisation of the premier bourse also reached all-time high of Tk 3,855 billion on Monday, surpassing the previous high of Tk 3,847 billion, recorded on April 4.
DSEX, the prime index of DSE, also crossed the 5,700-mark after three months and settled at 5,726.38, soaring 71.75 points or 1.27 per cent over the previous day.
The gainers took a strong lead over the losers, as prices of 209 securities advanced, 77 declined and 43 remained unchanged, out of the 329 issues traded on the DSE floor.
Market insiders said the investors' spontaneous participation backed by hope and excitement coupled with persistent rising trend in turnover in the recent days tempted the sideline investors to inject fresh fund on large-cap stocks.
They said the rally was largely supported by high market liquidity and fundamental stocks, like - banks, non-bank financial institutions (NBFIs) and telecommunication, which together was the main engine behind the change in the day's turnover and index.
"The escalation of market cap, index and turnover value — the three most important indicators of the stock exchange — in general suggests that the investors' confidence in the capital market is coming back," said an analyst at a leading brokerage firm.
IDLC Investment said, "DSEX surged by 72 points to reach three months' high, backed by the investors' anticipation on pending earnings and dividend declarations at the financial year-end".
The merchant bank noted that rising enthusiasm in the market resulted in strong wave of activities, yielding a total market turnover of Tk 10.46 billion.
"Large-cap dominated the day's market, advancing 1.4 per cent, with all the other cap classes making significant gain," it added.
NBFIs posted the highest gain of 3.6 per cent, among the major sectors, as ICB surged 6.3 per cent for the second day.
The heavyweight bank sector also surged 2.5 per cent, being the second highest gainer, followed by telecommunication 2.11 per cent.
"Since the banking sector has the highest market cap with free-floating proportion, the gain of this sector alone has made major contribution to the upswing of the index," commented a stockbroker.
He said the bank interest rates are declining, while foreign investors are injecting fresh funds into the market.
He noted that several factors, like - revision of budget coupled with June closing year-end earnings and dividend declarations, prompted the investors to inject fresh funds into stocks.
Following the widespread criticism over hike in excise duty on bank balance and uniform 15 per cent VAT imposition, the government has finally backtracked from implementing the new VAT law. It has also reduced the excise duty on bank balance for small savers.
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Source: The Financial Express