DSE turnover tops a staggering Tk 11bn
July 2, 2009
Turnover on the Dhaka Stock Exchange on Thursday touched an all-time high of Tk 11.49 billion, just two days after it topped Tk 9 billion.
The daily transaction on the country’s premier bourse reached Tk 9.42 billion, as investors shrugged off a hoax bomb threat that shut trading an hour earlier than the scheduled a day before.
Turnover leapt to a new height four times last month. It soared to Tk 8.34 billion on June 21.
On June 4 and 11, turnover on the bourse touched Tk 6.72 billion. It soared to Tk 7.81 billion on June 7.
Turnover on the Chittagong Stock Exchange also jumped to Tk 1.63 billion, a record it made on June 24.
The total turnover of the country’s twin bourses on the closing day of the week reached Tk 13.12 billion, also a new high.
The previous record was Tk 10.61 billion on June 30.
The key indices of the bourses also surged, powered mainly by banks, non-banking financial institutions and insurers, market observers said.
“The hike in financial shares caused by the news of a cut in corporate tax was the reason behind the rise of the indices,” said Bashir Ahmed, investment consultant of brokerage firm Stock & Bond.
DSE’s benchmark general index or DGEN rose 59.44 points or 1.97 percent to 3069.70, while the Chittagong stock’s selective categories index or CSCX closed at 6892.50, up by 120.27 points or 1.77 percent.
Market experts, however, cited concerns over the sustainability of the rise.
“If it [the rise in turnover] happened gradually then it was alright…but the sudden hikes like this indicate that it will not sustain,” Yaweer Sayeed, CEO of an asset management firm, told bdnews24.com.
Sayeed, who heads AIMS of Bangladesh, said the market was witnessing a “relatively big bubble” or overpricing of the scrips.
An increase in supply of shares is a must to keep the trend ongoing, he added.
Abu Ahmed, an adviser to the Securities and Exchange Commission, echoed the mutual fund operator.
“Market operators are happy to see the turnover crossing the Tk 10 billion mark…but they are not concerned about the overheating,” he told bdnews24.com.
Imminent steps to enlist more companies on the bourses should be the top priority of the authorities, added Ahmed, a professor of economics at the University of Dhaka.
Source: bdnews24.com
Comments
Got something to say?
You must be logged in to post a comment.