Stocks witnessed a steep rise in early trading on Wednesday, after two-day correction, as enthusiastic investors are showing their buying spree on large-cap issues riding on regulator’s number of bold steps to restore discipline in the market.
Following the previous two sessions’ correction, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) opened higher amid rising trading activities.
Within the first 30 minutes of trading, the key index of the country’s prime bourse soared more than 106 points while the CSE All Share Price Index (CASPI) of port city’s bourse jumped more than 192 points at 10:30 am when the report was filed.
DSEX, the prime index of the DSE, went up by 106 points or 2.25 per cent to reach 4,826 points at 10:30 am.
The two other indices also saw an upward trend till then. The DS30 index, comprising blue chips, rose 35 points to reach at 1,644 and the DSE Shariah Index (DSES) jumped 21 points to reach at 1,102 points till then.
Turnover, the important indicator of the market, stood at Tk 2.27 billion when the report was filed at 10:30 am.
Market operators said a number of bold steps of the securities regulator to restore discipline in the market, expansionary monetary policy, and some positive macro indicators encouraged investors to take positions on large-cap stocks again.
Lower returns on the money market, the lucrative price level of listed securities, strong regulatory actions against wrongdoers boosted the investors’ confidence in the market, said a merchant banker.
The high net worth investors are injecting fresh funds into the market in the past few sessions targeting capital gains as returns from the money market has declined significantly, he added.
The securities regulator’s latest hard stance on ensuring mandatory 2.0 per cent shareholding by each director and jointly 30 per cent shareholding had also a positive impact on the stock prices, said a leading broker.
Of the issues traded till then, 299 advanced, 17 declined, and 19 remained unchanged.
Beximco was the most traded stocks till then with shares worth Tk 394 million changing hands, closely followed by Beximco Pharma, Orion Pharma, IFIC Bank and Khulna Power.
The port city bourse – the Chittagong Stock Exchange – (CSE) also saw an upward trend till then with CSE All Share Price Index- CASPI-rising 192 points to stand at 13,684, also at 10:30 am.
The Selective Category Index – CSCX –also soared 119 points to stand at 8,259 points till then.
Of the issues traded till then, 77 gained, 12 declined, and 10 issues remained unchanged with Tk 39 million in turnover.
