FE Report (October 04, 2010)
Dhaka stocks witnessed a steep rise Sunday with the benchmark index crossing 7200-mark for the first time and turnover setting a new high.
After opening strongly, the benchmark Dhaka Stock Exchange General Index (DGEN) shot up by 1.77 per cent or 126.10 points to close at 7223.48, which was a fresh high.
With Sunday's rally, the market rose for seven straight sessions in a row, driven by liquidity, said analysts. The current booming market has attracted the investors, making the stocks' overvalued further, they said.
Trading activity also got momentum, as the turnover soared to an all time high of Tk 24.90 billion. The previous all time high was Tk 24.86 billion on June 16.
"It's liquidity that took the market to a new height," said Ahmad Rashid, managing director of Rashid Investment Services Ltd.
However, the market insiders warned the investors to be careful before making investment, as the market is getting riskier.
"It is a liquidity-driven rally. But, what worries me is the way it is going, we might not see a pause, but it could turn out to be a reversal. People should be concerned about their risks," said a leading fund manager.
Gainers thrashed losers, as out of 244 issues traded, 160 closed positive, 77 declined and seven remained unchanged.
All the sectors, except IT and Paper, closed in the positive territory. General Insurance climbed 7.31 per cent to emerge as the top-gaining sector. Ten general insurance companies out of 34 rose more than 10 per cent each, while fourteen gained more than five per cent.
BSRM Steel was the turnover leader with shares worth Tk 1.09 billion changing hands. Other turnover leaders were Peoples Leasing, Karnaphuli Insurance, Prime Finance, DESCO, Beximco Ltd, Titas Gas and Square Pharmaceuticals.
Dhaka stocks witnessed a steep rise Sunday with the benchmark index crossing 7200-mark for the first time and turnover setting a new high.
After opening strongly, the benchmark Dhaka Stock Exchange General Index (DGEN) shot up by 1.77 per cent or 126.10 points to close at 7223.48, which was a fresh high.
With Sunday's rally, the market rose for seven straight sessions in a row, driven by liquidity, said analysts. The current booming market has attracted the investors, making the stocks' overvalued further, they said.
Trading activity also got momentum, as the turnover soared to an all time high of Tk 24.90 billion. The previous all time high was Tk 24.86 billion on June 16.
"It's liquidity that took the market to a new height," said Ahmad Rashid, managing director of Rashid Investment Services Ltd.
However, the market insiders warned the investors to be careful before making investment, as the market is getting riskier.
"It is a liquidity-driven rally. But, what worries me is the way it is going, we might not see a pause, but it could turn out to be a reversal. People should be concerned about their risks," said a leading fund manager.
Gainers thrashed losers, as out of 244 issues traded, 160 closed positive, 77 declined and seven remained unchanged.
All the sectors, except IT and Paper, closed in the positive territory. General Insurance climbed 7.31 per cent to emerge as the top-gaining sector. Ten general insurance companies out of 34 rose more than 10 per cent each, while fourteen gained more than five per cent.
BSRM Steel was the turnover leader with shares worth Tk 1.09 billion changing hands. Other turnover leaders were Peoples Leasing, Karnaphuli Insurance, Prime Finance, DESCO, Beximco Ltd, Titas Gas and Square Pharmaceuticals.
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