Buoyed by a number of measures to lift the stockmarket, turnover at the Dhaka Stock Exchange crossed Tk 8 billion on Tuesday, surpassing by a staggering nearly Tk 3 billion transaction of the day before. The bullish run has been continuing for the past couple of days after the bourse authority and the National Board of Revenue declared moves to prop up the ailing market following meetings with the prime minister and the finance minister.
Mutual funds and shares worth Tk 8.03 billion changed hands at the main bourse before the close of trading on Tuesday. On Monday, the turnover stood at Tk 5.19 billion, exceeding that of Sunday by nearly Tk 440 million.
A turnover above the Tk 8 billion mark was last recorded on August 2 when shares worth Tk 8.82 billion changed hands.
The DSE general index shot up 194 points in the first five minutes of trading. At 2.30pm, the index registered a 300-point gain. However, the index dropped a little to close at 5,596.96 points, a gain of 278.28 points or 5.15 percent from the opening. Gainers heavily outweighed losers 250 to 8.
“Investors are regaining confidence after market regulator SEC and the top brass of the government stepped in to bolster the market. New investments are coming which is spiking trade,” Merchant Bankers’ Association chief Mohammad A Hafiz told bdnews24.com.
He was hopeful that the market will stabilise soon, saying: “We have to be careful so that nobody holding a responsible position makes negative remarks and negative decisions about the market are taken.”
On Monday, the DSE decided at a meeting that the sponsor directors of all listed companies have to hold at least 30 percent stakes, and those below the level must buy back their shares within six months.
It also decided to dissolve all but audit and demutualisation committees.
The National Board of Revenue said that a clarification has been sent to the SEC that confirms the decision taken at a meeting with the prime minister on Wednesday about not questioning source of funds invested in the market and that undisclosed income can be freely invested.
The decisions came after the indices plunged to new lows over the past week leading to street protests and then intervention from the prime minister.
On Wednesday night, Sheikh Hasina chaired a high-profile meeting that led to a number of decisions to prop up the stockmarket.
On Monday, turnover at DSE crossed the Tk 5 billion-mark with the general index gaining slightly on a selling spree, apparently buoyed by the news of the incoming capital market stimulus package.
At closing, the turnover stood at Tk 5.19 billion exceeding last day’s high by Tk 440 million and hitting the highest since trading resumed after the nine-day recess for Eid-ul-Azha.
The SEC declared on Sunday night following a meeting of capital market stakeholders and the finance minister that a ‘complete package’ to stabilise the shaky market and guard the interests of retail investors will be announced in a day or two.
-With The Independent input