The key index of Dhaka Stock Exchange, DSEX, on Sunday registered its highest single-day gain, 3.75 per cent, since its launch in January 28, 2013 due to investors’ buying spree following a media report that the government would cut interest rate on national savings certificates.
Market operators said investors were expecting that the rate cut would divert fund to the stock market.
Finance minister AMA Muhith at a discussion on Saturday said that the government would take a decision on interest rate cut on savings certificates on Sunday while a leading Bangla daily reported that the government would issue a directive on rate cut on Sunday.
Investment in the NSCs by clients surpassed the annual target by miles within nine months of this fiscal year.
Almost all the traded scrips increased on Sunday as 289 out of the traded 309 scrips advanced on the day, while just 17 declined and three remained unchanged.
Of the traded scrips, 77 advanced more than 9 per cent on the day.
The DSEX surged by 154.72 points to close at 4,277.05 points on the day.
Sunday’s gain was the highest after a 146-point rise of the bourse’s key index in July 24, 2013.
Investors are expecting that the fund flow to the capital market would increase once the government reduces interest rate on savings certificates, market operators said.
Besides, government high-ups recently made several positive remarks regarding the capital market that made investors optimistic about the market prospect, they said.
The market since October last year was on a sharp decline amid political unrest that made investors panicky.
Due to investors’ panic-driven share sell-offs, the DSEX on May 4 this year had declined to 3,959.73 points, below of its launch with 4,055.90 points.
But, the market started to rise as the fears of further political unrest subsided as the BNP-led opposition parties backtracked from their movement against the government after the controversial city corporation polls on April 28.
The turnover, a major indicator of the bourse, increased to Tk 520.81 crore on Sunday compared with that of Tk 419.31 crore in the previous trading session.
DS30, the blue-chip index of the DSE, went up by 3.78 percent, or 58.97 points, to close at 1,617.17 points on the day.
The Shariah index of the bourse, DSES, finished at 1,041.49 points, adding 3.07 per cent or 31.08 points.
‘The market roared in today’s [Sunday’s] session, after gaining momentum for last three sessions,’ IDLC Investments said in its daily market commentary.
‘Continuing gaining streak, indication of lower interest rate in savings certificates coupled with natural budgetary expectations created a scope for the market to rebound,’ it said.
Investors jumped vigorously to take advantage of the scope, putting immense buy pressure on almost all scrips, it said.
‘The market has opened on strong note adding to the substantial gain posted in the previous sessions,’ LankaBangla Securities said in its daily market analysis.
As trading session proceeded, the index staged a strong rally, it said.
United Power Generation and Distribution Company led the turnover leaders on the day with its shares worth Tk 50.96 crore changing hands.
ACI Formulations, MJL Bangladesh, Saif Powertec, IFAD Autos, ACI Limited, Shahjibazar Power Company, RAK Ceramics, Western Marine Shipyard and Khulna Power Company were among the other turnover leaders.
Islamic Insurance Bangladesh gained the most on the day with an 18.98-per cent increase in its share price, while Third ICB Mutual Fund was the worst loser of the day, shedding 2.44 per cent.
Market operators said investors were expecting that the rate cut would divert fund to the stock market.
Finance minister AMA Muhith at a discussion on Saturday said that the government would take a decision on interest rate cut on savings certificates on Sunday while a leading Bangla daily reported that the government would issue a directive on rate cut on Sunday.
Investment in the NSCs by clients surpassed the annual target by miles within nine months of this fiscal year.
Almost all the traded scrips increased on Sunday as 289 out of the traded 309 scrips advanced on the day, while just 17 declined and three remained unchanged.
Of the traded scrips, 77 advanced more than 9 per cent on the day.
The DSEX surged by 154.72 points to close at 4,277.05 points on the day.
Sunday’s gain was the highest after a 146-point rise of the bourse’s key index in July 24, 2013.
Investors are expecting that the fund flow to the capital market would increase once the government reduces interest rate on savings certificates, market operators said.
Besides, government high-ups recently made several positive remarks regarding the capital market that made investors optimistic about the market prospect, they said.
The market since October last year was on a sharp decline amid political unrest that made investors panicky.
Due to investors’ panic-driven share sell-offs, the DSEX on May 4 this year had declined to 3,959.73 points, below of its launch with 4,055.90 points.
But, the market started to rise as the fears of further political unrest subsided as the BNP-led opposition parties backtracked from their movement against the government after the controversial city corporation polls on April 28.
The turnover, a major indicator of the bourse, increased to Tk 520.81 crore on Sunday compared with that of Tk 419.31 crore in the previous trading session.
DS30, the blue-chip index of the DSE, went up by 3.78 percent, or 58.97 points, to close at 1,617.17 points on the day.
The Shariah index of the bourse, DSES, finished at 1,041.49 points, adding 3.07 per cent or 31.08 points.
‘The market roared in today’s [Sunday’s] session, after gaining momentum for last three sessions,’ IDLC Investments said in its daily market commentary.
‘Continuing gaining streak, indication of lower interest rate in savings certificates coupled with natural budgetary expectations created a scope for the market to rebound,’ it said.
Investors jumped vigorously to take advantage of the scope, putting immense buy pressure on almost all scrips, it said.
‘The market has opened on strong note adding to the substantial gain posted in the previous sessions,’ LankaBangla Securities said in its daily market analysis.
As trading session proceeded, the index staged a strong rally, it said.
United Power Generation and Distribution Company led the turnover leaders on the day with its shares worth Tk 50.96 crore changing hands.
ACI Formulations, MJL Bangladesh, Saif Powertec, IFAD Autos, ACI Limited, Shahjibazar Power Company, RAK Ceramics, Western Marine Shipyard and Khulna Power Company were among the other turnover leaders.
Islamic Insurance Bangladesh gained the most on the day with an 18.98-per cent increase in its share price, while Third ICB Mutual Fund was the worst loser of the day, shedding 2.44 per cent.
Source: New Age