Stock index crosses 6,400 points for the first time

Dhaka Stock Exchange

Dhaka stocks rose for a fourth consecutive day yesterday with the benchmark DSEX crossing the 6,400-point mark for the first time, bringing cheer to investors just before a five-day Eid holiday beginning today.

The prime index DSEX of Dhaka Stock Exchange (DSE) went up 39 points, or 0.62 per cent, to 6,405.04.

The DSEX was hovering around 6,000 points for more than one and a half months and finally it hit a new high on Sunday.

Participation of both individual and institutional investors has increased, said a stock broker.

But risks remain in the market as many stocks having subpar performance records rose abnormally in recent times, he said, adding that insurance stocks also jumped manifold.

So investors should be careful when making their investments because if they invest into stocks with good performance records they have no reason to be worried about, added the broker.

Turnover, another important indicator of the market, however, dropped 29 per cent to Tk 1,264 crore which was Tk 1,793 crore a day earlier.

As investors are travelling back to their homes in other districts to celebrate Eid, their participation was low, said Brac EPL Stock Brokerage Manager Md Rasel.

On the other hand, trade of Beximco’s shares was suspended for the day as it was the date for recording names of the shareholders who are entitled to get its sukuk.

So trade of the company’s shares, which remained at the top of the trading list for many days, was suspended, he said.

He hoped for the turnover to go higher after the Eid vacation.

At the DSE, 159 stocks advanced, 179 declined and 34 remained unchanged.

Investors are really happy now as the index is in a rising trend and they are getting profits, said stock investor Abdul Haque.

“We fear that if institutional investors leave the market suddenly, we will be impacted,” he said, reminding that banks had left the market suddenly in 2010, intensifying the market crash.

If the market can run on its own rhythm, there will be no reason for tension, he hoped.

Along with the index, the DSE’s market capitalisation also reached a historical high yesterday to Tk 535,185 crore.

Baraka Patenga Power topped the gainers’ list, rising 10 per cent, followed by Global Insurance, Beacon Pharmaceuticals, Central Insurance and Islami Insurance.

Stock of SAIF Powertec were traded the most, worth Tk 28 crore, followed by British American Tobacco Bangladesh, Fu-Wang Ceramic Industries, Power Grid Company and Beacon Pharmaceuticals.

Pioneer Insurance shed the most, falling 7.72 per cent, followed by Prime Finance First Mutual Fund, Zaheen Spinning Mills, Miracle Industries and Shinepukur Ceramics.

The port city bourse also rose yesterday. The CASPI, the general index of Chittagong Stock Exchange, advanced 190 points, or 1.03 per cent, to 18,569.

Among 313 stocks to witness trade, 138 advanced, 148 dropped and 27 remained unchanged.

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