The turnover of the Dhaka Stock Exchange on Wednesday hit eight-month high with a straight three trading-session gain amid fresh fund injection by the investors following the reported Bangladesh Bank move to release fund for the stock market within next month.
The turnover of the DSE advanced to Tk 752.30 crore on Wednesday while it was Tk 645.17 crore in the earlier trading session.
The Wednesday’s turnover was the highest after the turnover of Tk 1044.83 crore on October 3, 2012.
The participation of the investors started to increase after a finance ministry move on May 5 to refinance Tk 1,266 crore for the capital market to implement a scheme for the small-scale investors who were affected by the market crash in 2010.
Following the approval by the finance ministry, Bangladesh Bank board on May 28 decided to allocate Tk 900 crore for the stock market which boosted the market further.
Bangladesh Bank in May also eased some rules for provisioning against loans which also attracted capital market investors as they thought the BB’s move would increase the profit of the listed banks, financial institutions and insurance companies.
Participation by the foreign investors also increased in May compared with the earlier month.
Finance minister AMA Muhith in the proposed budget for the financial year 2013-2014 also announced a set of proposals for the stock market.
But, the key index of the bourse, DSEX, declined by 145.31 points on Sunday, the first trading session after the announcement of the proposed budget, as an immediate negative impact of scrapping the scope of legalising undisclosed money in the stock market.
DSE president Rakibur Rahman in a post-budget reaction on Sunday mentioned the budget as positive for the capital market and also said that the undisclosed money had a little impact over the stock market.
The DSEX closed at 4,103.39 points on Wednesday, advancing one per cent or 40.64 points.
The key index has now gained 220.58 points in the last three trading sessions after losing 165.22 points in the earlier two.
The old key index of the bourse, DGEN, closed at 4,328.48 points, advancing 0.43 per cent or 18.79 points on the day.
Meanwhile, the blue-chip index of the DSE, DS30, closed at 1,512.37 points on the day, losing 0.10 per cent or 1.59 points.
Market operators said that government’s positive attitude towards the capital market and different incentives altogether attracted investors who were inactive after the stock market crash.
The latest news reports that BB will release the fund by July was another reason behind the day’s increase, they said.
Of the 286 issues traded on the day, 156 advanced, 107 declined and 23 remained unchanged.
Summit Purbanchol Power Company Limited led the gainer’s list as its shares worth Tk 34.59 crore changed hands.
Singer Bangladesh gained the most on the day as its share prices increased by 9.94 per cent, while Shandhani Life Insurance was the worst loser, by losing 21.54 per cent.
-With New Age input
