Stocks gain on news of special fund

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DSEX

Bangladesh Bank on Tuesday issued a circular giving permission to all scheduled banks to form a special fund of Tk200crore each to invest in the capital market

DSEX, the key index of Dhaka Stock Exchange (DSE), on Tuesday gained 1.96% as Bangladesh Bank announced a special fund for banks to provide support to the capital market. 

DSEX index gained 85.96 points or 1.96% on the day to end at 4471 points. Meanwhile, the daily turnover stood at Tk505 crore, which was Tk340 crore in the previous trading session.

Bangladesh Bank on Tuesday issued a circular giving permission to all scheduled banks to form a special fund of Tk200crore each to invest in the capital market. 

The fund can be drawn from the bank’s own resources or borrowing money from the central bank through Treasury bill or bond repurchase agreements or repos at a 5% interest rate.

These initiatives have opened up an opportunity to bring a fresh investment of Tk12,000 crore from all 60 banks in the country, market operators said. 

EBL Securities in its daily market commentary said that the investors perceived the move for the money market regulator positively and spawned a massive buy pressure on Tuesday’s session, especially in bank, financial institutions and telecommunication sectors. 

The pharmaceuticals sector contributed 15.3% of the total turnover while engineering, textile and fuel & power sectors contributed 14.2%, 13.1% and 8% respectively, showed the daily market analysis of UCB Capital Management Limited. 

LafargeHolcim Bangladesh secured the leadership position on the top turnover chart with a turnover of Tk31.5 crore with its share price closing at Tk47.8 per share. 

Prime Bank 1st ICB AMCL Mutual Fund secured the highest gain of 10% during the session. Fareast Finance and Investment Ltd turned out the worst loser with its price declining by 6.5%. 

Among the traded issues 296 gained, 40 declined and 20 remained unchanged during the session in Dhaka bourse.