DSEX hits record high as stocks rise for third day

Staff Correspondent | Published: 22:46, Jul 05,2017 | Updated: 00:54, Jul 06,2017

 
 

Dhaka stocks advanced for the third trading session on Wednesday with the key index, DSEX, hitting all time high as investors continued injecting fund in the capital market amid optimism.
The key index of Dhaka Stock Exchange, DSEX, increased 0.38 per cent, or 22.15 points, to close at 5,782 points on Wednesday, the highest after its launch with 4,055 points on January 28, 2013.
Earlier, DSEX hit record at 5,777 points on April 4 this year following a six-month positive trend in the market.
The key index came down to 5,356 points on May 31 because of pre-budget uncertainties but started to rise again in June before the passage of the national budget.
The benchmark index gained 321 points in last 10 trading sessions as investors poured fresh funds in the market in expectation of a bullish market in the new fiscal year beginning on July 1.
Market capitalisation of the bourse also continued to break records, increasing to its all-time high to Tk 3,88,329 crore on Wednesday as share prices continued to rise.
Market operators said that although DSEX hit all time high of 5,782 points on Wednesday, the overall index or price level at the market was still far away from the record it had made in 2010, when the market ultimately crashed.
In 2013, the bourse launched DSEX under Standard and Poor’s developed free-float methodology with a view to replace the then key index of the bourse, DGEN.
DGEN was almost at the same, at 4,171.41 points, when DSEX was launched in 2013.
DGEN had increased to its all-time high at 8,918.51 points on December 5, 2010, when the market was in its climax before the market crash in 2010-11 and prolonged market dullness till June 2016.
DSEX was launched with 195 companies and the number increased to 264 companies as of Wednesday as they fulfilled the criterion of S&P.
About the latest surge in market, stockbrokers said the bullish trend of the market started from June 19 when budget issues and June-centric investment came into play.
The passage of national budget with some changes including suspending the new VAT law and lowering excise duty on bank deposit continued to bolster investors to make fresh investment in the market, they said.
Long-lasting bullish trend also lured huge number of fresh investors into the stock market, they said.
Share prices of the financial stocks continued surging on banks profit reports while energy stocks were also back into positive momentum on the day, they said.
The prices of energy and bank stocks rallied 0.68 per cent and 0.52 per cent respectively on the day.
The turnover decreased little to Tk 1,164.92 crore from that of Tk 1,223.74 crore in the previous trading session.
Olympic, Heidelberg Cement Bangladesh and Keya Cosmetics contributed most to the day’s bullish trend, stockbrokers said.
DS30, the blue-chip index of the DSE, added 0.30 per cent, or 6.34 points, to close at 2,120.77 points.
The Shariah index, DSES, gained 0.26 per cent, or 3.46 points, to finish at 1,317.61 points.
Of the 330 companies and mutual funds traded, 148 advanced, 136 declined and 45 remained unchanged.
Baraka Power led the turnover chart with its shares worth Tk 44.43 crore changing hands.
Keya Cosmetics, LankaBangla Finance, Paramount Textiles, Regent Textiles, BRAC Bank, Fu Wang Foods, Saif Powertec, Mercantile Bank and Prime Bank were the other turnover leaders.
National Housing Finance and Investment gained the most with a 9.84 per cent increase in its share price, while Beach Hatchery was the worst loser, shedding 7.50 per cent. 

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