Stocks soar on political calm
The country's premier bourse yesterday posted its highest single-day point rise in nine months, led by gains across almost all the sectors as investors remained bullish.
The benchmark index of Dhaka Stock Exchange, DSEX, rose 115.58 points, or 2.04 percent, to 5,770.77, notching the highest single-day increase since April 1, when it soared 149.70 points.
The DSEX is on track for an upward momentum buoyed by the largely peaceful recent national elections and the appointment of AHM Mustafa Kamal as the new finance minister, according to market insiders.
The minister is a former chairman of CMC Kamal Textile Mills, which was sold to Alif Group and has been listed on the market as Alif Manufacturing.
Insiders say Kamal's positive understanding about the stockmarket is expected to heal a rift between the finance ministry, the central bank, and the stockmarket. There are also expectations that the central bank may come up with measures to ease policies so that financial institutions can invest more.
Market insiders say confidence has returned to institutional and foreign investors and they are pouring money in lucrative stocks, taking turnover past Tk 1,000 crore.
Yesterday, turnover on the DSE rose 4.60 percent to Tk 1,010 crore.
“To maintain the investors' confidence, the government should bring well-performing stocks to the market,” said a top official of a leading brokerage house, requesting anonymity.
He said if investors keep pouring money in the well-performing stocks, the risk would be minimal.
“But there is concern as junk stocks have been on the top of the gainers' list in the last few days.”
The DSE mentioned on its website that it had asked five companies to inform whether there were any undisclosed price sensitive information that might have played a part behind the recent unusual price hike. The management of the companies replied that there was no such information.
The stockmarket regulator should be very active so that none can manipulate the market, the merchant banker added.
Rupali Bank was the top gainer adding 9.89 percent, while Delta Spinners was the worst loser shedding 9.88 percent.
Brac Bank dominated the turnover chart with 29.63 lakh shares worth Tk 23 crore changing hands, followed by JMI Syringes, Beximco, Alif Manufacturing and Olympic Industries.
Chittagong stocks also rose with the bourse's benchmark index, CSCX, advancing 247.46 points, or 2.36 percent, to finish at 10,689.92.
Gainers beat losers as 188 securities advanced and 72 declined while 20 finished unchanged on Chittagong Stock Exchange. The port city bourse traded 2.35 crore shares and mutual fund units worth Tk 33.69 crore.
Moreover, M Khairul Hossain, chairman of the Bangladesh Securities and Exchange Commission, along with its members went to the finance ministry yesterday to greet Kamal on becoming finance minister.
Hossain said the minister's good understanding about the stockmarket would help it grow further.
The minister said the market had developed a lot in the last few years for which investors had confidence in the market.
