Stocks rebounded strongly in the last week after losing in the past two straight weeks as investors got back confidence to put fresh funds into the market.
Thanks to Bangladesh Bank’s giving low-interest loans to commercial banks for five years to invest in the stock market, market analysts said.
DSEX, the prime index of the Dhaka Stock Exchange (DSE) increased by 112 points or 2.51 percent to close at 4,564.
President of Bangladesh Merchant Bankers Association (BMBA) Sayadur Rahman termed BB’s latest initiative to revitalise the capital market a milestone.
He said, the central bank's market supportive measures encouraged investors to hold their position on sector-wise securities.
Besides, investors relied on the market as the government has taken many steps including enhancing the participation of state-owned banking and non-banking institutions in the capital market to revive the capital market.
Bangladesh Bank on Monday allowed 59 scheduled banks to form a Tk 2.0 billion special fund each by taking low-interest loans from the BB for five years to invest in the stock market, he added.
“The central bank's moves would improve the liquidity flow,” market analysts said adding, “But securities regulator should address the issues like insider trading, rampant manipulation, good governance and dearth of quality stocks for long-term stability in the market.”
However, the DS30 index, comprising blue chips went up by 22.77 points to settle at 1,536 and the DSE Shariah Index increased by 18.40 points to finish at 1,045.
The total turnover on DSE stood at Tk 25.96 billion last week, up from Tk 22.22 billion in the week before.
The daily turnover averaged Tk 5.19 billion, which was 17 percent higher than the previous week's average of Tk 4.44 billion.
The market capitalisation of the DSE also rose 1.94 percent to Tk 3,470 billion on Thursday, from Tk 3,404 billion in the previous week.
Out of 358 issues traded, 246 closed higher and 94 ended lower while 18 issues remained unchanged on the DSE floor.
LafargeHolcim dominated the week's turnover chart for the fourth straight week with shares worth Tk 1.26 billion changing hands during the week.
Orion Pharma was the week's best performer, posting a gain of 34.89 percent while the Shyampur Sugar Mills was the worst loser, losing 12.28 percent.
Meanwhile, the port city bourse, the Chittagong Stock Exchange (CSE) also saw a positive trend last week with its selective category index (CSCX) gaining 221 points to 8,432 points.
Besides, CSE All Share Price Index (CASPI) also rose by 361 points to settle at 13,903 points in the week.
At the CSE, a total of 308 issues were traded. Among them, 232 closed higher, 63 ended lower and 13 remained unchanged.
However, the number of shares transacted on the floor of the CSE was 50.37 million and the total turnover in value was almost Tk 1.54 billion.