Investors’ confidence on the new commission, favourable economic indicators and economic activities nearing pre-pandemic levels account for the optimism at the bourse
Dhaka Stock Exchange’s market capitalisation hit a record high of Tk 501,709 crore on Thursday on the back of the bull run at the bourse.
Market capitalisation is the value of a company that is traded on the stock market, calculated by multiplying total outstanding shares with the market price of the stock.
DSEX, the benchmark index of the DSE, shot skywards after the Bangladesh Securities and Exchange Commission (BSEC) delayed an order to investigate unusual price movement, according to International Leasing Securities.
On Tuesday, the BSEC directed the bourses to open an investigation if any company’s share price rises or falls by more than 50 per cent in a month, and in cases of other unusual activities.
The bourses will consider market manipulation, insider trading and other market abuses during the investigation, it said.
The directive was halted on Wednesday.
Subsequently, on Thursday, the index went up by 139.30 points, or 2.14 per cent, to mount at a two year-high of 5,909 points.
However, turnover declined 1.8 per cent to Tk 2,070 crore. The banking sector dominated the turnover chart, covering 13.4 per cent of total turnover at DSE.
Investors’ positive expectations towards the capital market remained persistent primarily backed by favourable macroeconomic outlook and continuous efforts by the BSEC, which translated into rising market participation and much-needed confidence, said EBL Securities in its daily market commentary.
The new commission’s most notable work could be found in issues of market manipulation, mandatory shareholding by sponsor-directors and junk stocks, all of which gave confidence to retail investors to park their funds at the bourse.
“In the last 10 years, the stock market was not allowed to run normally. The regulatory body previously controlled the index, causing damage to the confidence of investors,” said a stockbroker requesting anonymity.
Beximco, Beximco Pharma and Robi topped the scrips-wise turnover board and contributed 8.94 per cent, 5.97 per cent and 4.74 per cent respectively of the total turnover.
Out of the 362 issues traded, 159 advanced, 133 declined, and 70 remained unchanged.
The port city bourse, CSE, also settled on the green trajectory.
The selected indices (CSCX) and All Share Price Index (CASPI) both advanced by 233.8 points and 379.5 points respectively.