Dhaka stocks last week returned to the positive zone after a three-week bear run as investors became optimistic following the news that the government approved a refinance scheme for the merchant banks and brokerage firms to compensate the small-scale investors affected by the market crash. DSEX, the benchmark general index of Dhaka Stock Exchange, gained 2.63 per cent, or 91.07 points, to close at 3,559.25 points on Thursday.
The previous benchmark general index of the bourse, DGEN, gained 2.39 per cent, or 87.36 points, to finish at 3,742.21 points.
The DSE blue-chip index, DS30, gained 2.95 per cent, or 37.94 points, to close at 1,322.32 points.
In taaaaahe previous three weeks the DSEX lost 86 points and the DGEN lost 65 points.
Average daily turnover of the bourse increased by 17.60 per cent to Tk 160 crore last week from that of Tk 138.61 crore in the week before.
Market operators said the institutional investors and the retailers became optimistic following news reports that the finance ministry approved a proposal of Bangladesh Securities and Exchange Commission to refinance the stock market operators with Tk 1,200 crore for compensating the small-scale investors.
They said the news gave a positive signal to the market which helped the investors to regain some confidence.
The finance ministry has already asked the Bangladesh Bank and the National Board of Revenue to take necessary steps to initiate the refinance scheme.
Officials of brokerage firms said the government’s move would make the market vibrant again as lots of beneficiary owners accounts were inactive due to loan burden.
‘If those accounts can be made active, the market will be vibrant again,’ said a stockbroker.
He said that the Bangladesh Bank should allocate the loan on a priority basis as the market was going through serious depression because of the ongoing political tension.
The government in March 2012 had announced the compensation package that also included an interest waiver on margin loans for the investors who suffered losses during the market crash in 2010.
After the compensation package was announced, merchant banks and brokerage houses informed the BSEC that the total number of affected investors was 9.53 lakh and Tk 1,200 crore would be needed for waiving interest of the investors and rescheduling of the loan interest.
Of the 288 issues traded in last week, 197 advanced, 74 declined, and 17 remained unchanged.
In the week, all the major sectors performed well with banks gaining 2.94 per cent followed by pharmaceuticals 2.48 per cent, fuel and power 1.47 per cent and non-bank financial institutions 1.02 per cent, while telecommunications gained 0.92 per cent.
Olympic Industries was the week’s turnover leader with its shares worth Tk 37.58 crore changing hands.
The other turnover leaders were United Airways, Titas Gas, Square Pharma, Summit Purbanchol Power, RN Spinning, Islami Bank, CVO Petrochemical Refinery, Beximco and Orion Pharma.
-With New Age input
