Interest rate cuts on savings schemes spur stocks 

Dhaka stocks witnessed a sharp rise on Tuesday, buoyed by the lowering interest rates on the savings certificates.

The market kicked off on a positive note in the morning in tandem with the previous session’s rally.

The benchmark DSEX index gained 52 points or 0.73 per cent to close at 7,258.57, extending its gaining streak for the second straight session.

The Shariah-based DSES index went up by 16 points or 1 per cent to 1,586 while the blue-chip comprising DS30 index advanced 24 points or 0.92 per cent to 2,685. 

The news on lowering interest rates on savings schemes during the trading hour has helped propel the already-bullish market, according to stockbrokers.

The government has lowered the interest rates on savings certificates to maintain a logical difference with the interest rate on bank deposits.

From now on, the fresh rate will be applicable only for those who buy new savings certificates, said the Internal Resources Division of the Finance Ministry in a notice on Tuesday.

At present, people have been rushing to invest in savings certificates as an alternative investment amid the pandemic due to the higher return as the interest rates on bank deposits recently declined sharply around 6 per cent.

Textile sector came to the spotlight rising about 2 percent led by Pacific Denims Limited hitting almost the upper limit circuit at 9.86 percent.

Engineering sector also shined driven by heavyweight Walton Hi-Tech Industries, the local electronic giant that gained 2.85 per cent.

All other sectors, including cement, travel and leisure, pharmaceuticals, telecommunications, general insurance and mutual funds closed positive.

Paper and printing, jute, IT and tannery stocks closed marginally lower on profit-booking.

The trading activities increased as the DSE turnover stood at Tk 1,910 crore, a rise of more than 8 percent over the previous session.

Gainers took a strong lead over the losers as out of 376 issues traded, 224 advanced, 117 declined, and 35 remained unchanged.

Beximo Ltd—the flagship company of the Beximco Group—was the most traded stock with shares worth Tk 1,44 crore, followed by Beximco Pharmaceuticals, Alif Manufacturing Company, Lafarge Holcim Bangladesh, SAIF Powertec, Maksons Spinning, Lanka Bangla Finance, Khulna Power Company, Pacific Denims and Rupali Insurance.

 After Pacific Denim, other top gainers included International Leasing and Financial Services, Alif Manufacturing Company Ltd, Premier Leasing and Finance Limited, Maksons Spinning, Eastern Insurance, Bangladesh National Insurance Company, FAS Finance and Investment, Peninsula Hotel and Midas Finance.