DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), crossed the 5,800-mark after 23 months on Tuesday, apparently resulting from the investors' optimism that the current situation will improve following the coronavirus vaccination programme next month.
Khairul Bashar Abu Taher Mohammed, chief executive officer of the MTB Capital Limited, told The Business Standard that the news that Bangladesh will start vaccinating people against the coronavirus from the first week of February has boosted the investors' confidence to invest more in the capital market.
Khairul said the stock market index has been rising for the past few months mainly for four reasons: decreased interest rates on bank deposits, declining bank investments, timely initiatives by the new leadership of the stock market regulator, and increased coordination among the regulators. The money flow in the stock market has increased due to these reasons.
The DSEX rose by 2.48% or 142 points to reach 5,861, while the Shariah index DSES rose by 1.94% to 1,322 and the blue-chip index DS30 jumped by 3.34% to 2,194 points.
The port city bourse Chittagong Stock Exchange's (CSE's) main index Caspi also jumped by 2.54% or 424 points to 17,089 on Tuesday.
The EBL Securities' daily market review said the securities regulator has taken several steps to build a vibrant capital market which resulted in a rising market and boosted the investors' confidence.
Turnover, one of the major indicators of the stock market, of the DSE rose by 18% to Tk1,982 crore.
Following this rising trend, market capitalisation of the DSE also rose by 2.57% to reach around Tk4,937 billion, which was the highest ever in the country's history.
The non-bank financial institution sector has contributed highest – 14.88% – to the DSE's total turnover, followed by the pharmaceutical, engineering, and fuel and power sectors.
The Lanka Bangla Finance dominated the scrip-wise turnover board and contributed 6.06% of the total turnover, followed by the Beximco Pharma and Beximco Limited.
Investors received the highest return of 5.4% from the engineering sector, followed by the miscellaneous, cement and telecom sectors.
Four engineering companies – Dominage Steel, BSRM Steel, BBS Cables and Saif Powertec – secured places in the top ten gainers' list at the DSE.
The share price of the Dominage Steel, which secured the top position, rose by 10% to Tk34.10 each.
Only four sectors performed poorly, out of which jute (5.2%), information technology (1.8%), mutual fund (1.2%) and general insurance (0.8%) sectors have generated the most negative return.
Six insurance firms – Provati Insurance, Republic Insurance, Rupali Insurance, Janata Insurance, Central Insurance and Phoenix Insurance – took place on the top ten losers' list.
ADN Telecom was at the top of the losers' list. Its share price fell by 9.88% to Tk55.6 each.
Out of the 362 issues traded at the DSE on Tuesday, 195 advanced, 106 declined, and 61 remained unchanged.