Stocks begin week with sharp rise

Dhaka Stock Exchange begins the week with a big jump in its index.

DSEX, the main index of the bourse, rose over 160 points or 3.5 percent as of 1.20pm. Turnover has also increased significantly.  

After a dull two years, the stock market bounced back last week riding on the central bank's move to allow banks invest more into the market. 

On top of Bangladesh Bank outlined formula for banks' fresh investment into stocks is another good news for the market, said a floor trader, that is government almost halved the interest rate against postal savings schemes. More savings are expected to switch into stock market if fundamentals do not deteriorate too much. 

Bangladesh Bank paved a way for scheduled banks to invest more than Tk11,000 crore in the capital market beyond their regular exposure. The scheme allows them to invest for five years. 

Postal savings will return merely up to 6 percent which has been a double digit figure until last week.