Stocks
DSE Ends the Year with the Turnover surge by 40%
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.
Reviewing the U.S. Stock Markets, the Nasdaq Composite, recorded a decent loss of 1,023 points, reaching a closing value of 16,690 points by the end of the week. Similarly, the S&P 500 index showed a positive trend, losing 240 points to settle at 5,408 points. Meanwhile, DJIA Index experienced a notable hike, adding 1,218 points during the week and concluding at 40,345 points after a week of gaining.
In contrast, Russell 3000 Index saw a loss in week performance, with a slight drop of 141 point to reach 3,077 points by the end of the week.
Moving to Russell 2000 Index, demonstrated a notable lost of 126 points, ending the week at 2,091 points.
In the Outgoing week, the European stock market displayed a mixed performance.
Here is the data on the weekly performance of the European Stock Market, The STOXX Europe 600 index, which is considered a leading benchmark for the European market and covers approximately 90 percent of the market capitalization across 17 countries, reported a loss of 18.49 points to close at 506.56.
The United Kingdom’s FTSE 100, one of the most widely followed indices in Europe, also showed a significant drop, losing 195 points or finishing the session at 8,181.
In Germany, the DAX 30 index, added by 605 points to reach 18,301, while France’s CAC 40 decreased by 278 points to stop at 7,352 at the end of the trading day.
Italy’s FTSE MIB, which covers the top 40 stocks traded on the Milan Stock Exchange, decreased by 1,081 points to 33,291. However, Spain’s IBEX 35, lost by 228 points, to close at 11,173.
A review of South Asian stock markets shows that India’s Bombay Stock Exchange (BSE) index BSE Sensex has lost 1,182 points during the week. At the end of the week, the index stood at 82,365 points. On the other hand, the Nifty-50 index of the country’s National Stock Exchange dropped by 383 points last week. At the end of the week, the index stood at 24,852 points.
Pakistan Stock Exchange Index ‘KSE 100’, added 459 points last week. After a week of losing, the index settled at 79,002 points.
On the other hand, The Sri Lankan stock market index loss, and the Colombo Stock Exchange index ‘ASPI’ decreased by 94 points in a week. After a week the index settled at 10,775 points.
Bhutan’s stock market index ‘BSI’ dropped by 9 points hence the index stood at 1,500 points throughout the whole week. Nepal’s ‘NEPSE’ lost 22 points, therefore the index stands at 2,727 points.
Hence Dhaka Stock Exchange: The benchmark index ‘DSEX’ lost by 75.77 points or 1.31 percent, in the outgoing week. At the end of the week, the index stands at 5,728 points.
