Dhaka stocks rose for the third trading session on Wednesday amid announcement of monetary policy statement for July-December period, helping the capital market investors to become optimistic following central bank governor Fazle Kabir’s assurance of making no links between MPS and capital market.
The key index of Dhaka Stock Exchange, DSEX, finished at 5,824.42 points, adding 0.38 per cent or 22.53 points.
Although the investors became a bit cautious during the mid trading session on Wednesday after an upward beginning of the session, the market turned around again during the second half of the session amid inventors’ optimistic participation on the trading floor, stockbrokers said.
They said investors became a bit cautious before the announcement of MPS by the Bangladesh Bank.
Investors, who were a bit cautious on the trading floor in last couple of trading sessions, however, resumed optimistic participation as soon as they came to know about the Bangladesh Bank governor’s remark through different media that there would be no relationship between the monetary policy and the movement of capital market, stockbrokers said.
Besides, the latest monetary policy also mentioned the capital market as vibrant, and that also encouraged the capital market investors, they said.
Md Sayadur Rahman, president of Bangladesh Merchant Bankers Association, also agreed with the BB governor’s remark regarding the relationship between the capital market and monetary policy and mentioned that Kabir’s assurance helped inventors to become active.
He, however, also mentioned that there was psychological impact of monetary policy among the investors.
Another stockbroker said that the monetary policy statement could be termed cautious as central bank targeted to limit private sector credit growth during the July-December period to 16.3 per cent, while the target was 16.6 per cent during the period of last MPS.
Besides the monetary policy statement issue, improved half-yearly report of a number of companies also helped investors to remain optimistic on the trading floor, he said.
‘Recent positive second quarterly declarations from multiple companies helped market yield a gaining momentum that lifted up 177 of the traded issues to green, as against decline of 95 issues,’ said IDLC Investments in its market commentary.
‘Activities stayed substantial, churning up a turnover of Tk 6.4 bn,’ it said.
‘Banks maintained their steep lead in turnover share, capturing 21.9 per cent of the day’s total turnover,’ the merchant bank said.
Of the 330 companies and mutual funds traded, 177 advanced, 95 declined and 58 remained unchanged.
Turnover on the bourse, however, declined a bit to Tk 638.94 crore compared with that of Tk 656.15 crore in the previous trading session.
DS30, the blue-chip index of DSE, increased 0.33 per cent or 7.10 points, to close at 2,131.34 points on Wednesday.
The Shariah index of the bourse, DSES, finished at 1,317.21 points, adding 0.37 per cent or 4.86 points.
IDLC Finance led the turnover chart on the day with its shares worth Tk 27.78 crore changing hands.
LankaBangla Finance, Brac Bank, Grameenphone, RAK Ceramics, City Bank, IFAD Autos, One Bank, Shajibazar Power Company and Fu Wang Food were other turnover leaders.
Safko Spinnings Mills gained the most, increasing 7.40 per cent, while Phoenix Finance 1st Mutual Fund was the worst loser, shedding 2.35 per cent.
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