Business, Front Page

DSE touches new landmark

Market cap crosses Tk 5,000 billion

Published : 16 Jan 2021 09:37 PM | Updated : 17 Jan 2021 12:36 AM

The Dhaka Stock Exchange (DSE) witnessed a rapid growth to set a landmark as the market-cap (capitalization) crossed Tk 5000 billion for the first time.

Market analysts said investors have continued showing a buying spree in different securities especially the telecommunication sector that played a crucial role in the rise of the market-cap of the DSE.

The market-cap on the DSE stood at Tk 5017 billion on Thursday.

They said general and institutional investors have again gained trust in the market for some market supportive steps by the Bangladesh Securities and Exchange Commission (BSEC), injecting fresh funds into the capital market.

Besides, the interest rate on FDR (fixed deposit receipt) and in the money market have decreased rapidly, they said adding that, as a result, many investors rely on the market instead of banks to inject more funds.

In this regard, eminent economist and market expert Prof Abu Ahmed told Bangladesh Post many investors continued their buying spree amid growing confidence in the market riding on regulatory moves to restore discipline as well as some good IPO approvals recently including biggest-ever issue Robi.

In this case, regulatory measures have played a crucial role in boosting the confidence of the stock investors, which has geared up the index and turnover in recent times, he mentioned.

The government should immediately bring in some good companies, in order to undertake a drive to develop a long-term financing capital market, Ahmed added.

The economist said the government should encourage good companies, including local as well as multinational companies like Nestle to offer IPOs.

Ahmed mentioned that the government should make some rules and give incentives including reducing corporate tax for listed companies to encourage good companies to be listed in the stock market.

A market expert said a significant amount of fresh funds has come to the capital market including some good securities in the market recently.

Most of the investors witnessed buying in telecom, financial institution, food and allied, fuel and power, pharmaceuticals and chemicals and engineering sectors helping the benchmark index to cross 5,900 points mark since 30 January 2019.

The prime index of the Dhaka Stock Exchange (DSE) increased significantly by 1873 points to stand at 5,909.30 points on Thursday over that in the same period of the previous year.

The DSE 30 Index comprising blue chips went up by 1361 points to close at 2,236.77 and the DSE Shariah Index (DSES) increased by 393.53 points to finish at 1,323.50 during the time.

On the other hand, the port city bourse, the Chattogram Stock Exchange (CSE) also saw a rapid growth during the time with its selective category index (CSCX) gaining 2749 points to close at 10,387 points.

The All-Share Price Index (CASPI) of the CSE was higher by 4,620 points to close at 17,220 points.