Dhaka:Turnover on the Dhaka Stock Exchange (DSE) rose by 13.88 percent last week compared to the previous week, despite declines in major indices.
According to Bangladesh Sangbad Sangstha, the average daily turnover increased to Tk 450.77 crore from Tk 395.20 crore in the preceding week, as per the DSE's weekly market review. Market insiders have pointed out that a daily turnover of at least Tk 1,500 crore is needed to achieve the expected level of trading activities and ensure the sustainability of the capital market.
The total value of shares traded amounted to Tk 2,250.38 crore over five trading sessions last week, compared to Tk 1,185.62 crore in three sessions the week before. Saiful Islam, President of the DSE Brokers Association of Bangladesh, noted that turnover had steadily declined in recent times, ranging between Tk 400 crore and Tk 500 crore daily. He attributed the low trading level to the current economic situation but acknowledged that government initiatives had partially improved turnover.
Last week, the benchmark DSEX index fell by 33.19 points, or 0.61 percent, to 5,417.44 points. The DS30 index decreased by 16.54 points, or 0.79 percent, hitting 2,086.86 points, while the DSES Shariah index dropped 19.73 points, or 1.84 percent, to 1,050.67 points. However, the DSE SME index, DSMEX, saw a gain of 6.4 points, or 0.63 percent, reaching 970.81 points.
The volume of shares traded also increased significantly, with 87.13 crore shares changing hands compared to 40.73 crore shares in the previous week. Despite this, declining share prices outnumbered advancing ones, with 250 companies experiencing price drops, 109 advancing, and 25 remaining unchanged. Shares of 27 companies were not traded during the week.
In other market segments, Tk 179.53 crore was traded on the block market, Tk 12.88 crore on the SME board, Tk 52.90 lakh on the Alternative Trading Board, and Tk 30.09 crore in government securities. Saiful Islam emphasized the importance of achieving a daily turnover between Tk 1,500 crore and Tk 2,000 crore for market sustainability, considering the economy's size.
Islam also highlighted the need to expedite the initiative to bring Tk 3,500 crore worth of bonds to the DSE's main board to boost market turnover. He mentioned ongoing discussions with the stock exchange to address procedural issues involving software modifications necessary for this initiative. Islam expressed optimism that the bonds could be introduced to the main board for trading within the year and stressed the need for active stakeholder efforts to accelerate the recovery process in the capital market and the overall economy.