Bangladesh’s capital market showed signs of recovery throughout the week, with a rise in both indices and daily turnover, resulting in a Tk 4,440 crore increase in the Dhaka Stock Exchange’s (DSE) market capitalisation.
An analysis of the DSE’s weekly report reveals that the benchmark index, DSEX, gained 61 points over the past week.
Among the other indices, the Shariah-based DSES rose by 6 points, while the blue-chip DS30 index increased by 16 points.
Daily turnover in the Dhaka market surged by more than 34%. While the average daily turnover in the last week of June stood at Tk 362 crore, it increased to Tk 486 crore in the first week of July.
Throughout the week, share prices of 257 companies increased, while 103 companies saw a drop in share prices. The share prices of 36 companies remained unchanged.
Sector-wise, all sectors except ceramics, food products and jute experienced price appreciation. The banking sector was particularly strong, with share prices rising by 65.14% and turnover increasing by 72.20%.
Out of the 36 listed banks, 30 saw share price gains, 2 declined, and 4 remained unchanged. Besides banks, non-bank financial institutions also performed well, with share prices increasing by 95.23% and turnover by 65%.
Indices up in first hour of trading, majority stocks gain at DSE and CSE
The insurance sector rebounded as well. In the general insurance segment, share prices rose by 55.71%, while in the life insurance segment, prices increased by 67.86%.
BRAC Bank topped the weekly turnover chart. Its shares last traded at Tk 53.80. Other companies with strong performance in turnover include Lovello, Beach Hatchery, Agni Systems, Midland Bank and Square Pharmaceuticals.
In the block market, Lovello recorded the highest share sales. Among banks, Midland Bank, National Bank and BRAC Bank led in block market transactions.
Islami Bank topped the list in terms of price gains on the DSE. Over the week, the bank’s shares yielded a return of 31.25%. The share, which opened at Tk 33.60, closed the week at Tk 44.10.
On the other hand, Berger Paints Bangladesh suffered the highest price drop last week. The company's weekly return fell by over 11%. Its share price declined from Tk 1,736 to Tk 1,539.
Positive Trend in CSE
Like Dhaka, the Chittagong Stock Exchange (CSE) also experienced a significant rise in indices. Over the week, the overall index of the CSE increased by 228 points.
Among the 319 companies that traded on the CSE during the week, 222 recorded price gains, while 70 saw price declines. The share prices of 27 companies remained unchanged.
Islami Bank also topped the list in Chattogram, with its total share value increasing by Tk 1,690 crore over the week.
Other notable gainers on the CSE included Prime Islami Life Insurance, Rupali Bank, Bangas Limited and SK Trims and Industries.
Among the top losers on the CSE were Nitol Insurance Company, Uttara Finance and Investment, Lovello, Berger Paints and Quasem Industries.
Speaking at an event on Friday, Commissioner of the Bangladesh Securities and Exchange Commission (BSEC), M Ali Akbar, remarked that the capital market is recovering quickly. “This is the right time for those who wish to invest in the market,” he said.
Addressing the issue of market manipulation, Commissioner Akbar reiterated the BSEC’s commitment to cracking down on irregularities.
Akbar said penalties would remain in place for those involved in market misconduct. “They will either pay the fines or appeal to the court. There will be no opportunity for waiving penalties,” he affirmed.