Clicky
Business

Investors cheer bourses up


Bangladeshpost
Published : 03 Oct 2020 08:45 PM

Country’s premier bourse, Dhaka Stock Exchange (DSE), in last week witnessed ups and downs although the market capital surpassed Taka 4,000 billion mark at the end with the rise of all indexes buoyed by the participation of enthusiastic investors in trade.

The market capital reached this magic figure after 15 months which was recorded on June 27 last year while the highest capital was registered Taka 4,285 billion in January 2018, according to the market analysts, reports BSS.

DSE on Thursday, the last working day of the week, recorded its total capital Taka 4,033 billion which was Taka 3,952 billion on Sunday, the first working day.

Besides, the benchmark index, DSEX bounced back to green after a single week of profit booking sell pressure amidst enthusiastic participation of the investors following the news that regulator has revised the margin loan limit announced recently based on the movement of the broad index of DSE which will come into effect from January 1, 2021.

DSEX spent this week hovering around 5,000 points as the index closed at 4,995 points with only 0.3 percent gain.

Meanwhile, Bangladesh Bank has reduced the interest rate on borrowing from its special investment fund to 4.75 percent from 5.00 percent aimed at helping country’s lenders to increase their stock investment capacity.

The upward movement in the benchmark index was mainly driven by the opportunist investors’ buying spree on mutual fund, financial institutions and bank sector issues.

In the week, the investors preferred bank sector stocks riding on the news that interest rate spread in the country’s banking system increased slightly in August 2020 as banks further slashed rates on deposits but charged a little bit higher on lending.

On the other hand, local electronics manufacturing giant, Walton Hi-Tech Industries has emerged as the second largest listed company of the country in terms of market capitalization after Grameenphone just within a week of its debut at the bourses.

International Leasing Securities Limited (ILSL) said daily average turnover of the week has remained flat over last week average as the investors were staying on the sidelines to observe the market movement.

It said the general insurance sector continued to dominate the turnover board with 26.5 percent of the week’s average turnover where top gainer lists were comprised of mostly from mutual fund units.

Another analyst, EBL Securities said investors were taking a sideline approach as they believed the market is justifiably valued and is waiting for upcoming earnings declaration before making portfolio restructuring decisions.

With the hope of upcoming reforms, investors have taken interest in mutual funds and this sector has achieved significant gain in this week, it added.

Point to point estimate revealed that during this week DSEX, DSES and DS30 added 16.5 points, 0.3 points and 9.5 points respectively to their previous week’s indices.

Major sectors witnessed mixed performance this week. Among the major sectors-– mutual fund (12.1pc, financial institution (5.1pc), and bank (1.0pc)– achieved price appreciation while life insurance (-4.7 pc), cement (-3.2 pc) and telecom (-1.2 pc) sectors witnessed price correction during this week, as per the ILSL.

It said the investors’ activity was mostly focused on general insurance (26.5 pc), pharma (11.1 pc) and Financial Institutions (10.1 pc) sectors while Beximco pharma (4.5 pc), Beximco (3.6 pc) and Sandhani insurance (2.8 pc) were on top of the weekly scrip-wise turnover board.

On the other hand, during this week, the port city bourse, Chittagong Stock Exchange (CSE), also witnessed volatility. CSE30 lost 37.4 points while CSCX and CASPI added 51.6 points and 77.6 points respectively over last week.