Trading volume rises despite decline in market capitalisation
Graphics: Agamir Somoy
Share prices of most companies declined last week, accompanied by falls in the indices and total market capitalisation of the stock market. However, despite a decline in the indices over several consecutive trading sessions, average daily turnover on the Dhaka Stock Exchange (DSE) increased by nearly 17 percent amid greater investor participation.
Of the five trading sessions on the DSE last week, the indices declined on three days. At the end of the final trading session of the week, the DSE’s total market capitalisation stood at Tk 673,553 crore, compared with Tk 674,476 crore at the end of the previous week. This means the market capitalisation fell by Tk 923 crore in a week.
Among the companies that participated in trading on the DSE throughout the week, share prices of 178 companies rose, while those of 163 declined. Share prices of 44 companies remained unchanged.
Alongside the decline in share prices and market capitalisation, the major indices also posted losses. The DSE’s benchmark index, DSEX, fell by 4.40 points or 0.08 percent, compared with a decline of 33.19 points in the previous week.
The DSE-30 index, comprising selected leading companies, dropped by 18.23 points or 0.87 percent. It had declined by 16.54 points in the previous week.
Meanwhile, the DSE Shariah Index, which tracks Shariah-compliant companies, fell by 2.96 points or 0.28 percent, compared with a decline of 19.73 points in the previous week.
Despite the declines in the indices and market capitalisation, trading activity showed some positive momentum. Average daily turnover on the DSE stood at Tk 526.79 crore last week, up from Tk 450.07 crore recorded per day in the previous week.
This represents an increase of Tk 76.72 crore or 17.05 percent in average daily turnover.
In terms of transaction value, Envoy Textiles topped the turnover chart last week. Its shares recorded an average daily turnover of Tk 21.96 crore, accounting for 4.17 percent of total turnover.
Matin Spinning and Saiham Textiles ranked second and third, respectively, with average daily turnovers of Tk 20.72 crore and Tk 13.22 crore.
The remaining companies among the top 10 by turnover were Shahjibazar Power, BRAC Bank, Paramount Textiles, Evince Textiles, Prime Finance First Mutual Fund, Nahi Aluminium and IPDC Finance.
