Dhaka stocks continued to rally for the second consecutive day on Thursday, with the turnover posting a significant rise, as the prime minister’s directive to bring back stability in the country’s ailing capital market infused the investors with new hope.
DGEN, the benchmark general index of Dhaka Stock Exchange, rose by 3.59 per cent, or 179.39 points, to close the day at 5,166.96 points.
The day’s turnover of the bourse increased to almost a one-month high of Tk 416.49 crore compared to that of Tk 285.15 crore on the previous day.
Market operators said investors on the day went for heavy buying following the announcement that prime minister Sheikh Hasina on Wednesday instructed the government agencies and regulatory bodies concerned to come up with a capital market stabilising package.
They said investors had for long been seeking the prime minister’s intervention for stabilising the equities market and her instruction to facilitate the investors in recovering their losses cheered them up a lot.
In the wake of continued demonstrations and massive plunges in stock prices, Sheikh Hasina on Wednesday held a four-hour meeting with capital market regulators and stakeholders at her Ganabhaban residence.
In the meeting she assured the participants of giving every possible government support to bring back stability in the stock market that had been passing through a severe depression for the past 10 months.
After the meeting, Securities and Exchange Commission member Arif Khan told the media that the prime minister was highly concerned over the issue and assured them of providing all necessary support for stabilising the market.
He said bankers in the meeting also agreed to increase their investment in the market.
In the meeting, the National Board of Revenue cleared its stance about investment of undisclosed money in the stock market, saying no question would be asked about the source of such funds.
‘The meeting had a genuine positive impact on the market. But, taking some concrete decisions and their quick implementation must be ensured to sustain the good vive,’ said a stockbroker.
‘The prime minister’s intervention was the last resort and it will not fail like the previous measures, if she is guided by the right people,’ said Zahid, an investor, standing in front of the DSE building.
The DSE general index had fallen below the psychological benchmark of 5,000 points for the first time in two years, when trading resumed on the bourse after the nine-day Eid holiday. In three post-Eid vacation trading sessions, the DGEN had suffered a sheer drop of 560 points.
Against this background, investors had staged demonstrations every day and even laid a siege to the SEC office and the Bangladesh Bank building, demanding resignation of the finance minister and the BB governor for their failure to stabilise the market. They also sought immediate intervention of the prime minister to put things right.
Of the 255 issues traded on Thursday, 238 advanced, 16 declined, and one remained unchanged.
-With New Age input
