Stocks continue to recover as DSEX crosses 6,200
DSE turnover hits 12-week high
Stocks retained their upward streak for the third consecutive session on Tuesday, with the Dhaka Stock Exchange's key index crossing the 6200 mark, riding on favourable regulatory interventions and increased market participation across the bourse.
Following the interventions and some positive updates on foreign exchange remittances, and a breathing space in exchange rates, investors entered a buying spell.
EBL Securities wrote in its daily market commentary that regulatory interventions had tamed the pessimism of investors and restored their confidence on the trading floor.
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Moreover, it added that the recent rise in remittance inflows and declining imports are providing some breathing space for the country's stressed foreign exchange reserves.
The DSE daily turnover increased 28.4% to Tk1,183 crore, the highest since 10 May.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), charged up 85.2 points or 1.38% to close at 6,249 on Tuesday.
Textiles, pharmaceuticals, and miscellaneous, dominated the sectoral turnover table, while the life insurance, services, and paper sectors led the gains, and the food and allied sector suffered a minor correction.
Of the 382 issues traded, 290 advanced, 36 declined, and 56 remained unchanged in the DSE.
The Chittagong Stock Exchange (CSE) also settled in the green.
Merchant bankers to give the market a hand
In a meeting with the Bangladesh Securities and Exchange Commission (BSEC) officials, the leaders of the Bangladesh Merchant Bankers Association (BMBA) stressed increasing market liquidity and strengthening investors' confidence.
The merchant bankers assured the regulator of their full cooperation in this regard, according to the regulator.
The meeting decided on four tasks to help strengthen the market.
These include merchant bankers encouraging their clients to reinvest the idle funds in their accounts in the secondary market, encouraging inactive clients to make fresh investments in stocks, adding at least 10% to the merchant banks' own portfolio, and very significantly, increasing efforts to bring more institutional investors into the capital market.
