Market Cap Rises Despite Widespread Share Drops

The Dhaka Stock Exchange (DSE) witnessed a week of mixed trading last week, where the number of companies experiencing a share price fall was nearly double the number that saw gains. Despite the widespread price drops, the DSE’s market capitalization managed to increase by over $\text{BDT }1.5\text{ billion}$ ($\text{BDT}$ is the currency of Bangladesh), with the daily average turnover also rising, and the main index edging up.

Share Prices and Market Breadth

Out of the total listed institutions traded on the DSE last week, 150 saw their prices increase, while 215 experienced a decline. The prices of 32 institutions remained unchanged. This means that the number of institutions with falling prices was $\text{1.43}$ times greater than those with rising prices.

Market Capitalization Growth

Following the week’s trading, the DSE’s market capitalization stood at $\text{BDT }7,25,063\text{ crore}$ (7.25 trillion) at the close of the last trading day. This is an increase from $\text{BDT }7,23,448\text{ crore}$ recorded at the end of the previous week. The market capitalization grew by $\text{BDT }1,615\text{ crore}$, or $\text{0.22\%}$, over the week. This increase follows three consecutive weeks of decline, where the market cap fell by $\text{BDT }1,018\text{ crore}$, $\text{BDT }146\text{ crore}$, and $\text{BDT }3,180\text{ crore}$ in the preceding weeks, respectively.

Index Performance: DSEX Edges Up

In tandem with the rising market capitalization, the DSE’s main price index, DSEX, also showed a marginal gain, increasing by $\text{0.66}$ points, or $\text{0.01\%}$, over the week. This minuscule rise comes after the index fell for three continuous weeks, losing $\text{34.80}$ points, $\text{73.85}$ points, and $\text{90.50}$ points in the previous three weeks, totaling a $\text{198}$-point drop.

The DSE Shariah Index, comprising Shariah-compliant companies, also saw a slight uptick, rising by $\text{0.51}$ points, or $\text{0.04\%}$. This follows a three-week decline.

However, the DSES-30 Index, which represents a selection of well-performing companies, dropped by $\text{21.20}$ points, or $\text{1.01\%}$, adding to losses of $\text{4.10}$ points, $\text{43.94}$ points, and $\text{31.68}$ points in the three previous weeks.

Increased Trading Activity

The trading volume on the DSE saw a boost last week. The daily average turnover on the DSE was $\text{BDT }620.10\text{ crore}$, up from $\text{BDT }583.76\text{ crore}$ in the previous week. This translates to an increase in average daily turnover of $\text{BDT }36.34\text{ crore}$, or $\text{6.23\%}$.

Turnover Leaders

The highest value of shares traded was recorded by BRAC Bank, with an average daily transaction of $\text{BDT }28.48\text{ crore}$, accounting for $\text{4.59\%}$ of the total turnover.

The top ten institutions by turnover are: BRAC Bank (Avg. daily turnover: $\text{BDT }28.48\text{ crore}$), Orion Infusion (Avg. daily turnover: $\text{BDT }24.12\text{ crore}$), Summit Alliance Port (Avg. daily turnover: $\text{BDT }23.18\text{ crore}$), Sonali Paper, Khan Brothers PP Woven Bag, Pragati Life Insurance, CVO Petrochemical, Fareast Knitting, Simtex Industries, K & Q.