Record-breaking run returns after brief pause : DSE general index crosses 7,500-point

Dhaka stocks on Wednesday hit fresh high with record-breaking run returning to the market after a brief pause in the trend as investors increased buying of shares in the last three days, defying warning issued by the bourses in the wake of an overheated market, market operators said.
   The general index of Dhaka Stock Exchange crossed 7,500-point mark for the first time to close at 7,513.46 points, gaining 50.40 points or 0.67 per cent from the previous day’s closing. The previous high of the bourse’s benchmark index was at 7,480.34 points reached on October 7.
   ‘Share prices of banks pulled the market on the day following Bangladesh Bank’s directives to 21 commercial banks to minimise their capital shortfall by one per cent or more of their risk-weighted assets by June next year,’ said a DSE director.
   Rise in share prices of non-bank financial institutions, insurance companies and mutual funds also contributed to the day’s upward trend, he said.
   The DSE general index started to gain again from Monday after a 187.80-point fall on Sunday following the warning issued by the chiefs of the stock exchanges and the ruling of the Appellate Division of the Supreme Court that allowed the Securities and Exchange Commission to enforce the newly introduced net asset value-based margin loan calculation method.
   Market experts, worried over the swift turnaround of the market, warned of sharp corrections anytime soon. They expressed concern that the market remained volatile as the prices of securities were swelling fast though there was no apparent reason for the surge in their share prices.
   Yawer Sayeed, managing director of the asset management firm, AIMS of Bangladesh, said, ‘If the regulators suspend margin loan facility for investors, the non-stop surge in the share prices may be halted.’
   ‘The SEC should take steps considering long-term betterment of the market.’
   Fakhor Uddin Ali, president of the Chittagong Stock Exchange, said quick profiteering attitude of investors pushed up investment in stocks. ‘I request the investors to put funds on stocks very carefully as the market has become overheated,’ he said.
   The market needs more supply of securities because investors’ demand for shares is increasing day by day, he added.
   The DSE’s all shares price index gained 40.48 points, or 0.65 per cent, to finish at 6,243.15 points on Wednesday.
   Of the total 243 issues traded at the bourse, 147 advanced, 95 declined, and one remained unchanged.
   One Bank topped the turnover leaders with 9.25 lakh shares valued at Tk 76.07 crore traded on the day.
   The turnover at the DSE was Tk 2,033.72 crore, up by Tk 14.73 crore from the previous day’s total.
   The other turnover leaders were Summit Power, Premier Bank, United Commercial Bank, NCC Bank, Peoples Leasing and Financial Services, Standard Bank, Shahjalal Islami Bank, Southeast Bank and Uttara Finance.
   Northern Insurance was the day’s biggest gainer, posting a 7.24-per cent rise in its share prices while Dhaka Fisheries was the worst loser on the day.
   The selective categories index of CSE increased by 85.02 points, or 0.61 per cent, to finish at 14,118.95 points on the day.
   Of the total 184 issues traded on the port city bourse, 75 declined, 104 advanced, and five remained unchanged.