Stocks regain more ground

Staff Correspondent | Published: 00:00, Jan 24,2020

 
 

Dhaka stocks soared on Thursday, extending the previous day’s gain as investors continued buying shares amid the news that the Bangladesh Bank, as part of the government initiative to stabilise the capital market, might create a Tk 10,000-crore fund to increase fund flow to the ailing market.

DSEX, the key index of the Dhaka Stock Exchange, gained 1.65 per cent, or 73.59 points, to close at 4,513.89 points on Thursday after increasing by 32 points in the previous day.

The DSEX gained 476 points in the last seven sessions with just a negative day.

In line with the previous day, the key index started gaining from the very beginning on Thursday and advanced more as the session progressed with investors increasing share buying amid better market prospect, market operators said.

They said that the media reported that in line with the stockbrokers’ demand, the central bank might create a Tk 10,000-crore refinancing fund for providing loans on easy terms to address the liquidity dearth on the capital market.

If created, the BB fund would help the market to rebound, market operators said.

The BB took the initiative after a meeting of policymakers in presence of prime minister Sheikh Hasina at her office in Dhaka on January 16 made a six-point proposals, emphasising an increase in fund flow to the market.

The meeting proposed that the government should create mechanisms for ensuring increased participation of banks and non-bank financial institutions, expand capacity of Investment Corporation of Bangladesh and provide funds to market intermediaries.

The government, Bangladesh Bank and stock market intermediaries swung into action to restore the market after the DSE key index hit a 56-month low on January 14 due to a relentless fall in share prices in the last 12 months. The DSE lost Tk 1 lakh crore in market capitalisation to the rout.

Earlier, BB governor Fazle Kabir on a couple of occasions said that the central bank would extend whatever support it needed to revive the stock market.

Besides, top brasses of four state-run banks at a meeting held on January 16 agreed to increase investment on the capital market following the government directions to do so.

The turnover on the DSE also increased to Tk 514.39 crore on Thursday from Tk 438.42 crore in the previous trading session.

Out of the 356 scrips traded on Thursday, 280 advanced, 44 declined and 32 remained unchanged.

DSE blue-chip index DS30 gained 1.55 per cent, or 23.57 points, to close at 1,543.42 points.

Shariah index DSES added 1.65 per cent, or 16.86 points, to end at 1,035.49 points.

LafargeHolcim Bangladesh led the turnover chart with its shares worth Tk 31.22 crore changing hands on the day.

Square Pharmaceuticals, Khulna Power Company, Beacon Pharmaceuticals, Bangladesh Submarine Cable Company, SS Steel, Pioneer Insurance, SK Trims, National Tubes and Karnaphuli Insurance Company were the other turnover leaders.

Reliance Insurance gained the most on the day with a 10-per cent increase in its share prices while Premier Cement Mills performed the worst, losing 7.34 per cent.

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