Stocks rebound after 4 weeks

After the losing streak for four weeks at a stretch, the country’s capital market finally rebounded in the last week. The general investors again relied market-supportive measures undertaken by the government. Market analysts said stocks witnessed gaining streak as hopeful investors rebuilt confidence on the market due to Bangladesh Bank's market supportive measures coupled with the government move to resolve Grameenphone's fight.

On the other hand, the institutional investors also showed positive step in the market following the central bank and government's measures. The central bank has recently announced a fresh policy for providing temporary liquidity support to the scheduled banks for boosting their investment in the capital market. Meanwhile, the government and top mobile phone operators have reached an agreement over settling tax imbalance which created positive effects among investors.

Eminent economist and market expert, Prof Abu Ahmed, told Bangladesh Post the share market needed some good financial base companies where investors can inject funds with confidence. He said, most of the investors have lost their investments for bad companies which failed to satisfy the investors with their earnings and dividends. As a result, most of the investors are selling their shares to flee the market, he said. The government should immediately prepare the ground quite well, in order to undertake a drive to develop a long-term financing capital market, Ahmed said.

The eminent economist said, the government should encourage good companies, including local as well as multinational, to offer IPOs. However, the prime index of the Dhaka Stock Exchange (DSE) went up by 112 points or 2.32 percent to settle at 4,968, after losing 381 points in the last four consecutive weeks. Meanwhile, the blue chips index (DS30) increased by 33.02 points to close at 1,768 points and the DSE Shariah Index rose 25.31 points to finish at Tk 1,148. However, the total turnover of DSE increased by 3.19 percent to Tk 19.57 billion from the previous day's Tk 18.98 billion.

The daily average turnover rose to Tk 3.91 billion, up 3.16 percent from the previous week's average of Tk 3.79 billion. The market cap of DSE increased to Tk 3,765 billion, Tk 3,689 billion on the previous day. Of the 353 issues traded, 252 closed higher, 76 incurred losses and 27 remained unchanged on the DSE trading floor. Grameenphone dominated the turnover chart and became the top on the DSE floor with 2.67 million shares worth Tk 962.62 million changing hands. It was closely followed by National Tubes, Fortune Shoes, Monno Ceramic and United Power. Sonar Bangla Insurance was the week's best performer, posting a gain of 28.57 percent while Fortune Shoes was the worst loser, plunging by 12.91 percent.

Meanwhile, the Chittagong Stock Exchange (CSE) also saw positive trend in last week with its selective category index (CSCX) gaining 2.24 percent to close at 9,161.83 points. On the other hand, the all share price index of the CSE (CASPI) was higher by almost 2.19 percent at the time to close at 15,083 points. At the CSE, gainers beat losers, as out of 304 issues traded, 189 closed higher, 89 finished lower and 26 remained unchanged. However, the number of shares transacted on the CSE floor was 36.41 million and the total turnover in value was Tk 1090.97 million.