Stocks rose sharply yesterday after the government decided to extend the deadline for cutting the banks’ investment exposure to t he stock market by two more years.
The market opened on happy note as the benchmark index DSEX crossing 4,480-mark swiftly before losing a few points at close.
The benchmark DSEX rose 51 points or 1.2% to 4,476. The index single-day rise was the highest in the last few months.
The Shariah index DSES rose 13 points to 1,078. The blue chip comprising index DS30 closed at 1,699, rising 13 points or 0.8%.
The Chittagong Stock Exchange Selective Category Index CSCX gained 82 points to 8,310.
On Sunday evening, the finance minister said banks will get another two years for bringing down their investment exposure to the stock market.
The market recouped some losses of previous sessions led by bank, cement and power stocks.
IDLC Investments said the market sparked up at the news of finance mister’s intention to propose an extension of two years for banks to lower their stock market exposure to allowed level.
“The comment revitalised the market from yesterday’s activities and a prolonged declining trend in the market starting from October that cost over 400 points from the broad index.”
All the major sectors ended green with improved participation. The DSE turnover crossed Tk400 crore mark after eleven days with the engineering sector, leading the sectoral activities chart, constituting 25.6% of the total turnover.
Lanka Bangla Securities said stocks bucked the trend with sharp move after previous session’s mixed performance amid hope on the government approval of the DSE’s proposal on adjusting the banks’ existing over-exposure to the capital market.
“The market made a significant move as investors found some comfort from the assurance of finance minister that the government will extend the time frame for adjusting commercial banks’ over-exposure to the capital market by two more years.”