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Dhaka stocks came back with a strong rally on Monday as the central bank’s just-announced monetary policy has elevated investors’ confidence about the market recovery in the coming days.
The Bangladesh Bank on Sunday announced its monetary policy for the first half of the fiscal year 2023-24, where it allowed banks to maintain a general provision of 1 per cent instead of the existing 2 per cent against classified loans to brokerage houses, merchant banks, and stock dealers.
The banking regulator has also issued a directive allowing all banks and financial institutions to facilitate trading of sukuk bonds in the secondary market, giving the capital market a fresh boost.
The DSEX, the key index of the Dhaka Stock Exchange (DSE), soared 33.1 points to settle at 6,314 against 6,281 in the previous trading session.
Among other indices, the DS30, the blue-chip index, added 5.35 points or 0.24 per cent to close at 2,188, and the DSES, the Shariah-based index, rose 6.43 points or 0.47 per cent to 1,369.
Turnover, another crucial market indicator, jumped 27.5 per cent to Tk 533 crore against Tk 418 crore in the previous session.
The Dhaka bourse started recovering from the recent downbeat vibes as jitters concerning the market momentum before the announcement of the monetary policy eased to a large extent because the monetary policy appeared as market friendly, said EBL Securities, a stockbroker, in its daily market review.
The Bangladesh Bank in the wake of the recent economic challenges, tried to back the country’s capital market by ensuring enough liquidity there, the banking regulator on Sunday said after unveiling its monetary policy for the first half of the fiscal year 2023-24.
The market opened higher on Monday, with buyer dominance prevailing throughout the session as opportunist investors sought quick gain opportunities in the beaten down scrips by taking advantage of the recent market corrections, EBL Securities added.
The life insurance sector rose 23.1 per cent to become the top contributor of the total DSE turnover, followed by pharma (10.6 per cent) and food (9.7 per cent).
Meghna Life Insurance was the most traded stock with Tk 28 crore worth of its shares changing hands, followed by Navana Pharmaceuticals (Tk 15 crore), and Sonali Life Insurance (Tk 14 crore).
Most sectors displayed positive returns, with the life insurance gaining the most with a return of 4.9 per cent, followed by general insurance (4.4 per cent) and cement (2.1 per cent).
Meghna Insurance Company Limited rose 9.9 per cent to become the day’s top gainer, while Khulna Printing & Packaging Limited suffered the most with a loss of 4.7 per cent.
On the other hand, the jute faced the highest correction of 0.3 per cent, followed by miscellaneous (0.1 per cent).
Out of the issues traded, 145 advanced, 27 declined and 220 remained unchanged on the DSE trading floor.
The port city bourse, CSE, also settled on green terrain, with the selected indices (CSCX), and the all-share price index (CASPI) – advanced by 46.2 points and 80.8 points respectively.
