For over a year, the financial indicators of the country’s stock market have shown relative stability. A significant portion of company share prices remains stagnant. Additionally, there’s a continuous decline in transaction volumes in the stock market. However, in December of the current year, daily average transactions in the stock market have witnessed a 40% increase compared to the same period last year. These insights emerge from EBL Securities’ monthly analysis of the stock market in Bangladesh.
According to the market analysis, daily average transactions on the Dhaka Stock Exchange (DSE) reached 4 crore 90 lakh dollar in December this year. In contrast, transactions in December of the previous year amounted to $35 million. This represents a notable increase of $10.4 million or 40% in daily average transactions during the same period last year.
The DSE data further reveals that in the past year, the market witnessed trading on 244 business days, resulting in the exchange of shares and units worth Tk 1.41 trillion. The average daily turnover stood at Tk 578 crore 71 lakh. However, the highest single-day transaction reached an impressive Tk 1 thousand 255 crore 68 lakh.
Analyzing the market’s recent performance, the DSE index, known as DSEX, stood at 6,207 points in December last year. In the current December, the index holds its position at 6,246 points. This indicates a marginal increase in the DSEX by 39 points during the same period.
EBL Securities’ monthly market review also points out that the December 2022 transactions on the DSE reached 3 crore 50 lakh dollars. Subsequently, in January, this amount increased to $490 million. However, there was a slight decline in February, settling at $430 million. In March, the daily average transactions surged to $450 million, reaching the highest monthly transaction amount for the year. It rose slightly to $540 million in April. Last May, there was an average daily transaction of 820 million dollars. Which is the highest monthly transaction in the year 2023.
Market analysts suggest that the renewed confidence among investors is partly due to the anticipation of a second installment release of the IMF loan. This has led to a slight increase in investments, and the market is expected to further improve after the upcoming national parliamentary elections.
In the closing weeks of the current year, both the DSEX index and daily transactions have witnessed a slight dip. However, the overall market capitalization has increased. In the weekly market analysis, it is observed that the DSEX index has decreased by 0.04% or 79 points, settling at 6,246 points. Similarly, the Shariah index (DSES) has decreased by 0.10%, reaching 1,364 points.
In conclusion, the market is experiencing a dynamic phase with fluctuations in daily transactions and index values. Investors are cautiously optimistic, awaiting the potential positive impact of upcoming events on the stock market.
