Stocks jump up on optimism as PM intervenes
Indices on the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) jumped up on Sunday, after gaining modestly in the previous two sessions, as Prime Minister Sheikh Hasina urged the relevant authorities last Thursday to take steps to prop up the markets, that has been losing over the past months.
DSEX, the prime index of DSE on Sunday gained 5.6 per cent to 4,382.06, the biggest jump since the key index DSEX was introduced in January 2013. It declined 24.8 per cent in the past 52 weeks.
Prime Minister Sheikh Hasina met capital market policymakers on Thursday to discuss ways to pull the stocks out of a slump, a day after an MP called in parliament for her intervention, bdnews24.com reported.
Khairul Hossain, the chairman of Bangladesh Securities and Exchange Commission, who has been blamed for the market debacle by the dominant small investors attended the meeting at the Prime Minister's Office in Dhaka along with relevant policy makers.
They discussed both short and long-term measures to bring "dynamism to the market", the BSEC said in a statement.
The Prime Minister ordered the relevant authorities to implement a number of short-term measures without delay. These include ensuring more involvement of the banks and financial institutions in the stock market, arranging loans on easy terms for merchant bankers and institutional investors, and increasing investment capabilities of the Investment Corporation of Bangladesh.
The other measures agreed in the meeting are: bolstering efforts to attract foreign investors and create their confidence in the local market, increasing institutional investments, and enlisting profitable multinational and government companies on the market for raising the number of quality IPOs.
On Sunday other indices DS-30 and DSE Shariah gained by 80.66 points and 57.30 points respectively to 1487.26 points and 997.59 points.
Of the traded 356 listed companies a total 160,963,422 numbers of shares and mutual funds were transacted with total transaction amount of Tk4.104 billion.
Prices increased for 346, decreased for 6 and remained unchanged for 4. Market capitalization on the day was Tk3345.57 billion.
On the basis of transaction the top ten companies were Square Pharma, Singer BD, Lafarge Holcim Bangladesh, KPCL, SS Steel, Grameen Phone, AND Telecom, NCC Bank, Sing Sign Textile and Bank Asia.
Top ten of highest prices selling companies were Beximco Pharma, ICB, Style Craft Limited, Hydelberg Cement, Desh Garment, Sonarbangla Insurance, Aziz Pipes, BD Lamps, Gemini Sea Food and Bangas Limited.
The lowest prices ten companies were SS Steel, EBL, NRB Mutual Fund, Standard Ceramics, Jute Spinners, LR Global Mutual Fund-1, Progressive Life Insurance, ABB First Mutual Fund, Altex Industries, BD Services and Dhaka Dyeing.
The CSE also jumped up on Sunday by 677 points to 13277 points and total transacted amount was Tk437 million on the day. Out of transacted 257 listed companies prices increased for 231, decreased for 11 and remained unchanged for 11 companies.