The market witnessed a steep rise at the opening on Monday, after hitting an 11-month low the previous day, as the government framed rescue packages with fresh financial injections.
Following the news, the market index reversed the previous eight days’ trend as DSEX, the prime index of the Dhaka Stock Exchange (DSE), jumped over 114 points or 1.86 per cent to stand at 6,257, after the first hour of trading at 11:00 am.
Two other DSE indices also saw a sharp rise till then with the DS30 index, comprising blue chips, rising 33.64 points to reach 2,310 and the Shariah Index (DSES) rose 18.46 points to stand at 1,380.
Turnover, another important indicator of the market, stood at Tk 2.28 billion after the first hour of trading at 11:00 am.
Market operators said the government moves to help revamp the dwindling stock market with increased buy pressure in the market.
Earlier, in the past eight consecutive days, DSEX eroded 556 points or 8.30 per cent, amid panic sales and a confidence crisis among investors.
The securities regulator has raised the margin-loan ratio to 1:1 while the government is set to extend the tenure as well as the amount of the capital-market refinancing fund to help revamp the country’s ailing capital market.
Finance Minister AHM Mustafa Kamal had a meeting with the central bank governor, finance secretary, and financial institution division (FID) secretary on Sunday to devise mechanisms for preventing further fall in the stock indices.
The Finance Minister has asked regulatory authorities concerned to help revamp the dwindling stock market that has been witnessing a freefall for the last eight trading sessions.
FID secretary Sheikh Mohammad Salim Ullah told the FE that the minister has asked the high officials to provide necessary support so that the investors’ confidence can be restored in the market.
The secretary said the minister also advised to keep the investments of banks through the Investment Corporation of Bangladesh (ICB) out of the purview of their exposure limit in the capital market.
After the news, the bargain hunters, including institutional investors rushed to buy shares as soon as the market opened on Monday.
Of the issues traded till then, 341 gained, 14 declined and 12 issues remained unchanged on the DSE trading floor.
Beximco was the most traded stock till the filing of this report with shares worth Tk 233 million changing hands, closely followed by Shinepukur Ceramics, JMI Hospital Requisite Manufacturing, BSC, and IPDC Finance.
The Chittagong Stock Exchange also saw a sharp rise till then with its All Shares Price Index (CASPI)—soaring 266 points to stand at 18,344 while the Selective Categories Index – CSCX – rose 160 points to reach 11,008 at 11:00 am.
Of the issues traded till then, 123 rose, 26 declined, and 10 remained unchanged with Tk 55 million in turnover.