Stock markets remained upbeat for the second consecutive week, spurred by rate cut in national savings certificate.
During the week that ended Thursday, the benchmark index DSEX gained 192 points or 4.7% to close the week at 4,315.
The blue-chip index DS30 rose over 65 points or 4% to 1,803. The shariah index DSES ended 36 points or 3.6% higher to 1,150.
The Chittagong Stock Exchange Selective Categories Index, CSCX gained over 416 points or 5.4% to 8,133.
Volume of trade improved significantly as the capital market attracted substantial funds from the sideline. The average daily turnover value at the DSE was Tk600 crore in the past week compared to the previous week’s average value of Tk360 crore.
Energy and engineering sector dominated the trading in the week as the two accounted for nearly 40% of the total turnover.
Small caps were in the buying radar of investors in the past week. Among the small-cap sectors, IT surged 10.8%, followed by engineering 9.7% and textile 7.9%.
All other major sectors closed positive only except food and allied that fell 2.6%. Among the major sectors, banking and non-banking financial institutions rose by 4.7% and 4% respectively.
Mutual fund shone in the past week with an increase of almost 10% following the Bangladesh Bank’s circular on relaxing the provisioning requirement for non-banking financial institutions, which encouraged some institutional investors to pour funds in mutual funds.
On Sunday, Finance Minister AMA Muhith disclosed that the government has decided to lower the five-year savings certificate from 13.19% to 11.26%.
“This put a positive impact in the capital market amid expectation that more funds which were invested in the savings certificates or new excess funds might flow in the stock market,” said BRAC EPL.
Lanka Bangla Securities said interest rate reduction in five years savings certificate coupled with imminent budget expectations made investors buoyant about stocks.