Dhaka stock gained heavily on Wednesday with the turnover crossing Tk 1,000 crore mark after eight months following mounting confidence of the investors after
the government initiated several positive moves to boost the capital market.
The turnover of the bourse increased to Tk 1,072.26 crore which was 26.54 per cent more than the earlier trading session’s Tk 847.39 crore.
Wednesday’s turnover was highest after the turnover of Tk 1,172.13 crore on September 29 last year.
The benchmark general index of the DSE, DSEX, increased by 1.78 per cent, or 74.75 points, to close at 4,259.21 points on the day.
Market operators said that increased confidence of investors on the capital market is the main reason behind the rising turnover and price indices of the bourse.
They also said that the government’s positive decision played the main role behind the increased confidence of the investors on the capital market which led the market to go up for last one-and-half month.
The finance ministry decision to refinance Tk 1,200 crore to implement the scheme for the small investors who were affected by the stock market crash in 2010-11 boosted the market first, they said.
They said that the subsequent approval by the Bangladesh Bank for forming a fund to refinance Tk 900 crore in the stock market increased investors’ confidence over the stock market.
Later in May, the BB also relaxed some rules of loan provisioning for the financial institutions which made investors optimistic about the future of listed banks, NBFIs, and insurance companies as they hoped that will increase the profitability of these companies.
The government in the proposed budget for the financial year 2013-14 proposed a set of incentives for the stock market which boosted investors’ confidence further, they said.
The old key index of the bourse, DGEN, finished at 4,477.08 points, advancing by 2.06 per cent or 90.59 points.
DS30, the blue chip index of the bourse, advanced by 2.23 per cent, or 34.38 points, to close at 1,570.34 points.
The visit of representatives of JP Morgan, an American multinational banking and financial institution, to the DSE on Tuesday to explore investment prospects in the country’s bourse also made investors optimistic, a senior official of a merchant bank said.
The approval of BB’s proposed fund by the ministry of finance was another reason behind the sharp rise of the bourse on Wednesday, he said.
All these positive decisions together attracted the inactive investors to the capital market which led to rising turnover and indices up, he said.
DSE turnover hit a record high on December 5, 2010 to
Tk 3,249.57 crore with a record high index of 8,918.51 points.
The turnover and the index continued to fall for more than last two years after the market crashed in early 2011.
The aftershock of the crash has been continuing since then as the DGEN had lost 3,032 points in 2011 and 1,038 points in 2012.
Of the 292 shares and mutual funds traded on the day, 148 advanced, 119 declined and 25 remained unchanged.
Bangladesh Submarine Cable Company Limited led the turnover chart on the day as its shares worth Tk 45.09 crore changed hands.
JMI Syringes and Medical Devices, a newly listed company in the DSE, gained the most on the day by advancing 9.90 per cent, while Southeast Bank First Mutual Fund lost the most by 7.56 per cent.
-With New Age input
