Dhaka stocks gained sharply on Tuesday, the first trading session of the financial year 2013-2014, with the old key index of Dhaka Stock Exchange, DGEN,
crossing 4,500-point mark for the first time in eight months.
The DGEN increased to 4,505.37 points, advancing by 2.72 per cent or 119.60 points.
On October 11 last year, the DGEN had dropped below 4,500-point mark.
The DGEN plummeted to a five-year low at 3,617.35 points on April 29, 2013.
The DGEN stood at 3,383.23 points on November 11, 2009. It had soared to its highest-ever level of 8,918.51 points on December 5, 2010.
The benchmark general index of the bourse, DSEX, increased by 2.91 per cent, or 119.51 points, to finish at 4,224.16 points on Tuesday.
DS30, the blue-chip index of the bourse, increased to 1,578.38 points, advancing by 2.99 per cent or 45.83 points.
Market operators said share prices went up as the institutional investors and the mutual funds started to reinvest in stocks after the end of their accounts closing date on June 30.
The retail investors also started to participate in the trading following the rise in share prices, they said.
The finance ministry’s move to refinance Tk 1,266 crore to implement the scheme for the small-scale investors affected by the stock market crash in 2010 boosted the investors’ confidence recently after a plunge in the previous month.
The formation of a special fund of Tk 900 crore for the capital market by the Bangladesh Bank following the finance ministry’s decision boosted the investors’ confidence further.
The BB’s move of relaxing some rules for loan provisioning was another reason for the market rise.
The turnover of the bourse increased to Tk 762.53 crore on Tuesday from that of the previous trading session’s Tk 568.22 crore.
Of the 282 shares and mutual funds traded on the day, 256 advanced, 21 declined, and five remained unchanged.
Textile sector rebounded after a significant fall in the previous trading session
with a 6.86-per cent gain as investors deemed that the withdrawal of generalised system of preferences by the USA for the Bangladeshi products would not impact much on the profitability of the listed companies of the sector.
Meghna Petroleum led the gainers’ list on the day with its shares worth Tk 44.33 crore changing hands on the day.
CMC Kamal gained the most on the day as its share price increased by 10 per cent, while Fifth ICB Mutual Fund was the worst loser of the day, declining by 6.62 per cent.
-With New Age input
