Dhaka stocks on Thursday declined sharply after a steep rise in the previous session as the investors reacted negatively to the monetary policy announced by the Bangladesh Bank on the day.
The benchmark general index of the Dhaka Stock Exchange, DSEX, finished at 3,979.19 points, shedding 2.38 per cent or 97.30 points on Thursday after it had advanced by 146.93 points on Wednesday.
Market operators said that the day’s trading began with a cheery mood as investors, buoyed by the previous day’s gains following the Bangladesh Securities and Exchange Commission decision to allow all the mutual funds to issue stock dividends for its unit holders, went for buying.
But, within 30 minutes after start of the trading, news spread in brokerage houses that the central bank announced a monetary policy for July-December by lowering private sector credit growth target to 15.50 per cent from 18.50 per cent in January-June, they said.
Dejected investors, who hoped for an expansionary monetary policy, went for selling bringing down the general index.
‘Investors were been hoping that the liquidity crisis in the capital market would ease if the central bank had increased private sector credit growth target. But the lower credit growth target dejected the investors who thought that the money supply in stocks would be squeezed further,’ said a stockbroker.
Although BB governor Atiur Rahman said that the central bank would continue to support the capital market investors found nothing positive for the capital market in the new monetary policy which could support the market, he said.
‘The market fell as an immediate impact of the monetary policy. But the actual impact of the policy on the investors’ psyche will be known in the coming days,’ said another stockbroker.
DGEN, the old key index of the bourse, declined by 2.19 per cent, or 96.58 points, to finish at 4,312.20 points on the day.
DS30, the blue chip index of the DSE, closed at 1,478.26 points, shedding 2.18 per cent or 32.99 points.
The turnover of the bourse declined to Tk 403.80 crore from Tk 464.07 crore in the previous trading session.
Of the 285 companies and mutual funds traded on the day, 37 advanced, 238 declined and 10 remained unchanged.
Meghna petroleum led the turnover chart on the day with shares worth Tk 29.29 crore changing hands. Bangladesh Submarine Cable Company, Titas Gas, Active Fine Chemicals, Padma Oil, Olympic Industries, Jamuna Oil, Unique Hotel and Resorts, Grameenphone and United Airways followed the chart.
-With New Age input
