DSEX posts record gain in 7 years

Stocks rallied yesterday with the prime index witnessing the biggest jump in the past seven years. 

DSEX, the benchmark index of Dhaka Stock Exchange, jumped 232 points or 5.6 percent to close at 4,382 points. Earlier, the index posted a gain of 155 points in May 2015. 

The Shariah index DSES went up 57 points or 6 percent and the blue chip index DS30 gained 81 points or 5.7 percent. 

Caspi, the key index of the Chittagong Stock Exchange also posted a gain of 677 points or 5.4 percent. 

Apparently, the record gain in the indices was a result of the prime minister's recent instruction to the finance ministry and the securities regulator to take measures to revitalise the capital market. 

Moreover, the Bangladesh Bank officials have recently told the Business Standard that the finance ministry has proposed the central bank to make policies to disburse a soft loan of Tk10,000 crore to the stock intermediaries from fiscal budget. 

The central bank has also announced to support the capital market not only by injecting funds but also by reforming policies. 

Furthermore, four state-owned banks, Sonali, Rupali, Agrani and Janata, have expressed its intention to invest in the capital market. 

Two of the directors of the company, Samuel S Chowdhury and Tapan Chowdhury have recently expressed their intention to buy 3 lakh shares each at prevailing market price through the DSE and the CSE, informed the DSE website. This announcement also helped the indices to climb further. 

The large-cap stock, Square Pharmaceuticals Ltd was the most traded stock with a turnover of Tk19.1 crore and a closing price of Tk192.8 per share yesterday. The stock gained 8.7 percent price. 

Meanwhile, Grameenphone has appointed Yasir Azman as its new chief executive officer. The move to appoint a local person as the CEO will play a vital role in resolving the dispute with the regulator, and to expand business, said an official of the mobile operator. 

Following the positive news, Grameenphone shares exhibited an 8.7 percent gain yesterday with a closing price of Tk263.3 per share. 

The directors of two of the companies in the textile sector, Makson Spinning Mills Ltd and Malek Spinning Mills Ltd yesterday announced to buy 25 lakh shares and 5 lakh shares respectively at prevailing market prices through DSE within the next 30 days. 

The binge of all these positive news has bolstered confidence among investors which has helped almost all the sectors to end in green territory yesterday. 

Beximco Pharmaceuticals Ltd and the Investment Corporation of Bangladesh topped the gainers' table with a massive gain of 10 percent closing at Tk66 and Tk70.4 per share respectively. 

SS Steel however, was the day's worst loser shedding 7.5 percent price closing at Tk14.8 per share. 

The gainers sharply outnumbered the losers as out of 356 issues traded, 346 advanced, 6 declined and 4 remained unchanged on the DSE trading floor.