Stocks rebound strongly on Bangladesh Bank’s special fund

Image: Bizbangladesh.net
Dhaka stocks soared previously week after suffering losses in the previous fourteen days as investors continued a buying spree due to the Bangladesh Bank’s proceed to set up a special fund for the currency markets.

DSEX, the main element index of the Dhaka STOCK MARKET, soared by 2.51 % or 111.65 points, to close at 4,564.61 points on the last trading session during the past week on Thursday, after shedding 60 points in the last two weeks.

After falls in the first two trading sessions of the week, the marketplace surged within the last three sessions as the investors went for heavy buying following Bangladesh Bank’s circular allowing the forming of a particular fund for the currency markets.

The central bank on February 10 issued an order allowing each schedule bank to borrow up to Tk 200 crore from the central at low interest to purchase the stock market.

The investors expected that the banks would invest in the administrative centre market as share prices of the majority of the companies were trading at very lucrative levels after the recent market turmoil.

EBL Securities in its weekly market commentary said, ‘DSEX, the broad based index of the Dhaka bourse, rallied this week on Bangladesh Bank’s declaration to supply special fund support for the ailing capital market, which caused an upsurge in the index of 112 points or 2.5 %.’

‘Investors cheered up after the declaration and engaged in massive trading activities amid optimism,’ it said.

Average share prices of non-bank financial institutions, energy, bank and textile sectors advanced by 9.9 per cent, 2.7 per cent, 2.1 per cent and 1.5 % respectively.

Market operators said that the BB move instilled enthusiasm in to the market which have been volatile over the worries over impact of coronavirus outbreak in China on Bangladesh’s external trade, poor earnings disclosures by companies and insufficient investors’ confidence available in the market.

Out of the total 358 shares traded in the past week, the costs of 246 advanced, 94 declined and 18 remained unchanged.

The daily average turnover on the DSE advanced to Tk 519.30 crore the other day in comparison to Tk 444.41 crore in the week before.

Shariah index of the bourse DSES added 1.79 %, or 18.4 points, during the past week following which it closed at 1,045.82 points.

DS30, the blue-chip index of the DSE, jumped by 1.5 %, or 22.77 points, and closed at 1,536.63 points.

LafargeHolcim Bangladesh led the turnover chart after shares worth Tk 126.53 crore were traded during the past week.

Khulna UTILITY COMPANY, Indo-Bangla Pharmaceuticals, ADN Telecom, Orion Infusion, Shepherd Industries, SK Trims, SS Steel, Bangladesh Shipping Corporation and Golden Harvest Agro Industries were the other turnover leaders.

Orion Pharma outperformed others during the past week with a rise in share prices by 34.89 % while Shyampur Sugar Mills fared the worst with a plunge in share prices by 12.28 %. 
Source: https://www.newagebd.net

Tags :

Share this news on:

Previous Story

Trending Topics

Archive