Dhaka stocks sustained the gaining streak for the second day on Wednesday as investors continued to bulk purchase, buoyed by a number of government steps taken in their favour after six days of heavy fall and rowdy protests.
The benchmark general index of Dhaka Stock Exchange advanced by 178.59 points, or 2.38 per cent, to close at 7,690.69 points, recouping 1,191 points in the last two trading days after the index had lost 1,829 points in the previous six trading days.
Market players said the turnover on the day also increased as supply of shares was aplenty for investors to buy.
The DSE general index gained by a record of 1,012.66 points on Tuesday and there were few sellers on the market on the day as, encouraged by the moves of the Securities and Exchange Commission and the Bangladesh Bank, investors made huge purchase orders.
The SEC on Monday increased the margin loan ratio for the investors and shifted 14 issues from the spot market to the normal one while the central bank assured the banks that it would be lenient on their investment in the capital market.
The securities market watchdog halted trading on Monday after the DSE general index had lost 660 points in just 50 minutes of trade as panic-stricken investors went for heavy selling following a credit crunch on the capital market.
Different government agencies scampered to find ways to put an end to the protests of investors, who blamed the central bank for squeezing the money supply.
Two advisers to the prime minister, the Bangladesh Bank governor, and SEC officials also held a meeting on Tuesday at the Prime Minister’s Office and directed all concerned to stabilise the market and take long-term plans.
‘The market is returning to a normal state. Today’s rise in share prices was natural, although Tuesday’s rise was abnormal,’ said professor Mahmud Osman Imam, who teaches finance at Dhaka University.
He said, ‘The investors who had failed to buy shares yesterday could do that today. That’s why the turnover also rose on the day,’ he said.
The daily turnover at the DSE stood at Tk 1,649.76 crore, up by Tk 672.62 crore from that on the previous day.
Of the 246 issues traded on the DSE on Wednesday, 147 advanced, 94 declined, and five remained unchanged.
United Commercial Bank topped the turnover leaders with 35.97 lakh shares worth Tk 77.79 crore traded on the day.
The rest of the turnover leaders were NBL, United Airways, Southeast Bank, Bextex, Bay Leasing and Investment, Titas Gas, Peoples Leasing and Finance Services, and Grameenphone.
Most of the investors alleged that they did not get margin loan from the merchant banks at the newly set ratio of 1:2.
The merchant bankers said, ‘We failed to give margin loan at the maximum limit because of credit crunch.’
