Daily turnover has gone up by 53.79% while market cap rose to Tk15,186 crore
The country’s prime bourse yesterday gained 5.6%, the highest ever since the broad index was introduced seven years ago, amid optimism over different government moves to revive the falling market.
After months of gloomy state, DSEX, the key index of Dhaka Stock Exchange (DSE), gained 232.23 points on the day to end at 4,382 points. The index was launched on January 27, 2013 with 4,056 as base points.
Meanwhile, the daily turnover stood at Tk411.36 crore, up by 53.79%, which was Tk267.49 crore in the previous trading session.
The second highest gain of the index in a single day was 155 points on May 10, 2015.
Meanwhile, CASPI, the key index on the port city bourse Chittagong Stock Exchange (CSE), also jumped 677 points to close at 13,277 points.
Yesterday, among the traded issues 346 gained, 6 declined and 4 remained unchanged during the session at Dhaka Stock Exchange while 231 gained, 15 declined and 11 remained unchanged at CSE.
Prime Minister Sheikh Hasina Thursday ordered implementation of six short-term measures to revive the country’s ailing stock market, which boosted investors' battered confidence, market operators said.
As a result, market participation from investors saw a significant rise, which carried the DSEX upwards.
Prime minister met capital market policymakers to discuss ways to pull the stocks out of a slump, a day after a lawmaker called in parliament for her intervention.
Bangladesh Securities and Exchange Commission (BSEC) Chairman M Khairul Hossain and government policymakers attended the meeting.
Sheikh Hasina ordered the relevant authorities to implement a number of short-term measures without delay. Banks and non-bank financial institutions would be asked to increase their investment in the stock market.
The meeting also directed to enhance investment capacity of state-run Investment Corporation of Bangladesh (ICB).
Initiatives to enlist on the stock market good companies including multinational and government-owned companies were also emphasized at the meeting.
It suggested that merchant bankers and institutional investors should give loan facilities on easy terms. Necessary measures should be taken to attract foreign investment and build their confidence in the country’s stock market.
DSE director Shakil Rizvi told Dhaka Tribune that the meeting with prime minister and four state-run banks decided to increase their investment in the stock market.
"As a result, investors felt confident after a long time. People were panicked and sold their shares. This has stopped. The index has risen,” he explained.
On January 16, four state-run banks decided to increase their investment in the stock market.
As part of a regular meeting, chairmen and managing directors of Sonali, Rupali, Agrani and Janata Banks met on the day in the board room of Sonali Bank.
The meeting emphasized increasing investment in the capital market and also instructed the officials to take necessary steps in this regard.
Among other factors that pushed the market, is Bangladesh Bank's positive attitude towards Tk10,000 crore fund.
Institutional investors recently sought Tk10,000 crore from the government to support the retail investors who incurred losses in their stocks they had bought on margin loans.
Rumour about the probable change in the post of Bangladesh Securities and Exchange Commission (BSEC) chairman also played a role in the day's trading.
Yesterday, the market capitalization at Dhaka bourse rose by Tk15,186 crore in the single session, taking the total market cap to Tk3,34,556 crore, which was Tk3,19,370 crore on January 16.
The engineering sector contributed 16.5% of the total turnover while pharmaceuticals contributed 13.4%, banking 13.3% and insurance sectors 9.6%, showed the daily market analysis of UCB Capital Management Limited.
Square Pharmaceuticals led the turnover chart with Tk19.2 crore as its share price went up by 8.69% and sold at Tk192.8 each.
It was followed by Singer Bangladesh with Tk17.2 crore, LafargeHolcim Bangladesh with Tk13.2 crore, Khulna Power Company with Tk12.1 crore and SS Steel with Tk10.4 crore.
Beximco Pharmaceuticals secured the highest gain of 10% during the session, followed by ICB with 10%, Stylecraft with 9.9%, Heidelberg Cement Bangladesh with 9.9%, Desh Garmants with 9.9%, Grameenphone 8.7% and British American Tobacco Bangladesh Company (BATBC) with 7.50%.
Buoyed stock investors of DSE yesterday scrambled for the shares in Grameenphone, even at its halted price.
The largest listed company in terms of paid-up capital, GP closed the day at Tk263.3 per share, up from Tk242.2 per share in the previous session.
Buy orders were posted at GP’s site from almost all brokerage houses and merchant banks.
DSE Shariah index DSES advanced 6.09% to end at 997.6 points, while blue-chip index DS30 went up by 5.73% to close at 1,487.3 points.
DSEX declined 24.8% in the past 52 weeks. In the first 10 trading sessions in the new year, the market lost Tk26,154cr or 7.7% capitalization in continuation of the last year's Tk51,732 crore or 12.33% market cap loss. The key index, DSEX, of Dhaka bourse lost 416 points in the sessions.