Dhaka stocks rebounded strongly in the past week, showing signs of recovery from a prolonged depression as investors went into buying mood following a number of moves taken by the government and the Bangladesh Bank
Market operators said the appointments of two more members to the Securities and Exchange Commission by the government and extension of time for the private banks to cut down their exposure in the capital market by the Bangladesh Bank boosted the confidence of investors in the past week.
With the appointment of the two members, the commission got adequate members to fulfil the quorum and started its operation in full pace.
The benchmark general index of Dhaka Stock Exchange, or DGEN, gained 365.09 points, or 6.76 per cent, in the past week to close at 5,762.71 points. The DGEN had lost 320.46 points in the previous week.
Average daily turnover also increased by 43.11 per cent to Tk 502.40 crore from Tk 351.07 crore in the previous week.
Both institutional and retailer investors became active in the market in the past week as the Bangladesh Bank extended the deadline for banks and financial institutions to cut down their excess loans they had provided to their merchant banking or brokerage wings from August 31 to December 31 in a bid to increase liquidity supply in the volatile market, observed stockbrokers.
They, however, said many of the retail investors continued to face liquidity crisis while they wanted to buy shares at relatively cheaper rate to adjust their losses.
Out of the five trading sessions of the week, the DGEN gained in four sessions and declined in one.
In the opening day of the week, the DGEN gained 92.26 points, or 1.70 per cent, on Sunday following the government and central bank moves.
The gaining streak continued on Monday as the investors went on buying binge as the DGEN advanced by 113.71 points, or 2.07 per cent.
The optimism about a stable capital market among investors increased while the DGEN gained 154.66 points, or 2.76 per cent, on Tuesday.
On Wednesday, after a four-day bull-run DGEN declined by 89.57 points, or 1.55 per cent, as investors went for profit-taking sell-off.
Stocks returned to black on Thursday as investors went for heavy buying, banking on a fresh rumour that the government might allow whitening of undisclosed money in the next national budget. The DGEN on the day advanced by 94.02 points, or 1.65 per cent.
MI Cement Factory Limited topped the week’s turnover list with 60,14,400 shares worth Tk 84.52 crore changing hands. The other turnover leaders were United Airways, BSRM Steels, Peoples Leasing and Financial Services, Titas Gas, UCBL, LankaBangla Finance, Aftab Automobiles, National Bank and Beximco Limited.
Market analysts said that the issue of whitening of undisclosed money would continue to influence the DSE trading in the coming days.
‘Some newspapers suggested that the government would allow money whitening for capital market investment. But a number of other newspapers reported that the money whitening facilities will not be there. So, the trading before the budget, which will be announced on June 9, might be topsy-turvy,’ observed an analyst.
Courtesy of New Age
