Core index hits all-time high

Dhaka,  Tue,  25 July 2017
Published : 10 Jul 2017, 21:30:13
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Core index hits all-time high

DSE turnover reaches four-month high on buying spree
FE Report


Stocks extended the winning spell Monday, with key index of the prime bourse hitting new high amid a gradual revival of investor confidence and an increased supply of fresh funds.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), which replaced the DGEN in four-and-a-half-year back, rose 52.89 points or 0.91 per cent to finish at a new high of 5,827, surpassing the previous high of 5,783 points recorded last week.

The country's prime bourse launched the DSE Broad Index (DSEX) on January 27, 2013 with a base point of 4,055.90, replacing the DSE General Index (DGEN).

However, DGEN, the then key index of the DSE, rose to an all-time high at 8918.51 points on December 5, 2010, when the market was bullish before crash.

Daily turnover value also soared to four months high to Tk 12.64 billion on the country's premier bourse on Monday, climbing further by 9.0 per cent over previous day's mark of Tk 11.60 billion as optimistic investors continued their buying spree amid optimism.

It is also the biggest single-day transaction since March 22, this year, when the turnover totaled a record Tk 12.90 billion.

Along with turnover and prime index, the total market capitalisation of the DSE also rose to an all-time high of over Tk 3,891 billion on the day, surpassing the previous high of Tk 3,883 billion recorded last week.

Market insiders attributed the current market trend to investors' growing confidence and fresh investment in the stock market.

They said the low bank interest rate on deposit, possible interest cut on saving instruments, revision of budget coupled with optimism of June closing year-end earnings and dividend declarations continued to prompt investors to inject fresh funds into stocks, taking the market turnover to fresh four months high.

"The market made another bullish move closing the index at historic high as optimistic investors continued their buying interest on large-cap issues amid optimism," said an analyst at a leading brokerage firm.

The market started with an upward trend which continued till end of the session with no sign of reversal, finally ended nearly 53 points higher.

The two other indices also closed higher. The DS30 index, comprising blue chips jumped 13.87 points or 0.65 per cent to finish at 2,122. The DSE Shariah Index (DSES) rose 5.61 points or 0.43 per cent to close at 1,320.

The port city bourse, the Chittagong Stock Exchange (CSE), also closed higher with its Selective Categories Index - CSCX -advancing nearly 98 points to settle at 10,917 points.

Gainers beat losers as 144 issues closed higher, 90 closed lower and 29 remained unchanged on the CSE.

The port city bourse traded 32.53 million shares and mutual fund units' worth Tk 813 million in turnover.

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