Daily Turnover Exceeds Tk 1,000 Crores After Two Months at DSE
Graphics: Agamir Somoy
The country's leading stock market, which had been in a negative trend for a long period, is finally returning to a positive trajectory. After more than two months, turnover on the Dhaka Stock Exchange (DSE), the country's premier stock market, exceeded Tk1,000 crore-mark on Wednesday.
The last time turnover crossed this milestone was on February 17 of this year, with Tk1,222 crore. On Wednesday, the turnover reached Tk1,056 crore, accompanied by a price increase for the majority of shares.
The global economy began facing negative impacts following the American attack on Iran on February 28 of this year. When Iran closed the Strait of Hormuz, the price of fuel oil in the global market began to skyrocket. Before the conflict began, a barrel of crude oil was selling for $65; two weeks into the war, the price reached as high as $120 per barrel. Naturally, the negative impact of rising fuel prices began to affect the country’s stock market.
Investor confidence began to return about two weeks ago after a ceasefire was implemented between the two parties. Although the index still showed some negative trends, turnover did not drop significantly. Most recently, yesterday, US President Donald Trump announced an indefinite extension of the ceasefire.
Market analysts suggest that Trump's announcement has had a positive impact on investors. Additionally, the prolonged price drop brought the share prices of many fundamentally strong companies well below their rational value. As a result, many institutional investors have taken an active role in the market, the effects of which were visible in today's trading.
On Wednesday, the fourth working day of the week, trading on the DSE ended with an index rise. On this day, both the share prices of most companies and the total turnover in terms of value increased. According to reports, at the end of the day, the DSE Broad Index (DSEX) rose by 41 points to stand at 5,298 points. Meanwhile, the DSE Shariah Index (DSES) rose by 3 points to 1,065 points, and the DSE-30 Index rose by 20 points to stand at 2,004 points.
Out of 391 companies and mutual funds, the prices of 213 increased, 121 decreased, and 57 remained unchanged. A total of Tk1,056 crore and 36 lakh and three thousand traded on the DSE, which is Tk 127 crore and 8 lakh more than the previous working day. On the preceding day, the turnover, however, was Tk929 crore and 28 lakh, respectively.
On the other hand, the Chittagong Stock Exchange (CSE) overall index, CASPI, rose by 60 points to stand at 14,796 points. A total of 230 institutions participated in trading at the CSE. Among them, the prices of 110 increased, 91 decreased, and 29 remained unchanged. Shares and units worth Tk 17 crore and 52 lakh were traded on the CSE.
City Bank PLC emerged at the top of the turnover list on the DSE, with shares worth Tk 26 crore and 48 lakh and 80 thousand were traded. Dominate Steel secured the second position on the turnover list with trades totaling Tk25 crore 63 lakh 7 thousand. Saif Powertec Limited climbed to the third spot with a turnover of Tk 23 crore and 31 lakh and 75 thousand, respectively.
Other companies featured on the top turnover list include Acme Pesticides Limited, Monno Fabrics Limited, Khan Brothers PP Woven Bag Industries Limited, Taufika Foods and Lovello Ice-cream Limited, Agni Systems Limited, Simtex Industries Limited, and Peoples Insurance Company Limited.