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Capital market makes solid start in new year

Published : 08 Jan 2022 10:21 PM

The country's capital market witnessed a solid start in the new calendar year 2022 as investors continued pouring their funds in large-cap stocks.

The capital market saw sustained growth last year in terms of scale and value, coasting on the robust economic recovery, they said.

Now, more progress can be expected in the capital market with the overall modern financial ecosystem, they mentioned.

Favourable macroeconomic data also encouraged investors to put fresh funds on major sector stocks like financial institutions, banking, telecom, power and food sector stocks, pushing the index higher, they said.

The stocks witnessed a rapid growth as many institutional investors injected fresh funds into selective large-cap stocks, they mentioned.

Professor Abu Ahmed, capital market analyst, and an eminent economist, told Bangladesh Post, stocks are now in a good position and investors like to invest here which is good for us.

The capital market now draws the attention of investors as a big sector, it is the great success of the capital market, he added.

He said, “People’s interest in the capital market has increased due to tightening investment in savings certificates and lower interest rates on bank deposits.”  

Investment in the capital market is increasing, especially as there are fewer opportunities for alternative investment, he said, adding that investor confidence has begun to return after the new commission took charge and its various positive steps. 

“As part of its move, new investors are entering the market every day and Beneficial Owners (BO) accounts are increasing. As a result, transactions and market capitalization in the capital market are increasing,” he mentioned.

“The government should immediately prepare the ground quite well to bring in some good companies in 2022 in order to undertake a drive to develop a long-term financing capital market,” Ahmed mentioned.

He suggested investing in companies that are continuing to make good profits over the last few years with business-successful organizations, and efficient management authorities, when considering investing in the capital market.

However, DSEX, the prime index of Dhaka Stock Exchange (DSE), went up 230.79 points or 3.42 percent to close at 6,987 in the last week. 

The DS30 index, comprising blue chips, increased by 70.50 points to settle at 2,603 and the DSE Shariah Index (DSES) rose 41.03 points to finish at 1,472.

Market capitalisation of the DSE also increased by 2.92 percent to Tk 5,580 billion on Thursday against Tk 5,421 billion in the week before.

The week's total turnover stood at Tk 64.88 billion on the prime bourse as against Tk 41.60 billion in the previous week.

Beximco topped the turnover list with shares worth Tk 5.99 billion changing hands. It was followed by Bangladesh Shipping Corporation (Tk 3.42 billion), Fortune Shoes (Tk 2.75 billion), Power Grid Company (Tk 2.07 billion) and Delta Life Insurance (Tk 1.95 billion).

Bangladesh Shipping Corporation was the top gainer last week, soaring 45.55 percent while Sonali Paper and Board Mills was the worst loser, shedding 20.53 percent.

Of the traded issues, 286 issues advanced, 86 declined, and 10 remained unchanged on the DSE trading floor.

On the other hand, the port city bourse, the Chattogram Stock Exchange (CSE) also saw a rapid growth with its selective category index (CSCX) gaining 497 points in the last week to close at 12,310 points.

The All-Share Price Index (CASPI) of the CSE was higher by 829 points to close at 20,495 points.

Of the 349 issues traded, 282 advanced, 62 declined and five remained unchanged on the CSE floor.

The port city's bourse traded 6.03 crore shares and mutual fund units with turnover value of Tk 176 crore during the last week.

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