Investor Confidence Boosts Equity Trading in Q3


DSEX Gains Solid 19.2% Over July-September Period

In the third quarter that has just ended (July-September), the country’s main stock exchange experienced a bull run with the post-covid economic dynamic.

Analysis of data for the third quarter of 2021 shows that the Dhaka Stock Exchange’s benchmark DSEX posted a robust gain of 19.2% during the July-September period.

On the other hand, daily turnover on the Dhaka Stock Exchange averaged Tk 2,152 crore during the period as investors rushed to buy shares.

Three IPOs, Baraka Potenga, Lovello and SBAC Bank, made their debuts in the mainstream market during the period.

Stock analysts have hinted at post-pandemic revenue after a long period of stock market closures.

The continued liquidity of the market, low bank interest rates and a number of excellent decisions of the regulatory commission are the main reasons for the upward trend in the July-September period.

VIPB Asset Management Company Limited CEO and equity market analyst Shahidul Islam told Dhaka Tribune: “After a long period, there has recently been a positive dynamic in the country’s economy, which has also benefited the country. stock market. Behind this I think the country’s money market, banks and (BSEC Bangladesh Securities and Exchange Commission) played a vital role.

“You will notice that during this period (Q3) the overall trading volume and the index both increased more than before. Liquidity in the market has increased and investor confidence is also on the rise, as no company has experienced a sudden rise or fall in its stock price. “

“In addition, I think the low interest rate of the bank is another logical reason to increase investments in the stock market,” he added.

Speaking to the Dhaka Tribune, Shakil Rizvi, director of the Dhaka Stock Exchange (DSE) said: “No one has been able to trade for a long time during the Covid-19 lockdown. Again, during this time BSEC had worked and made several good decisions. As a result, investor confidence in the stock market has increased and this brings the gains that the stock market had made in the 3rd quarter.

Asked about important BSEC decisions, Rizvi said, “Among many decisions, make mandatory a 2% stake by each director individually, reinvestment of unclaimed cash dividends, giving strong advice to some companies with less than 10% market share to quickly release the remaining stocks and monitor all stocks that have risen or fallen sharply are important. “

“Launching the SME market at the very end of the quarter is also an excellent decision. We may see the effect in the next quarter, ”he added.

The former president of the DSE said: “In order to prevent ‘bad’ companies from entering the market, the BSEC should examine the financial statements of companies as well as conduct a direct inspection of them through the DSE. and approving IPOs will increase transparency – and market depth as well.

Note that on September 28 the DEX, the benchmark of the DSE, rose 45.52 points or 0.62% to over 7,297.24 – the highest since its inception there was is almost nine years old on January 27.

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