Dhaka stocks continued with the gaining streak for the third straight week with an increased turnover as the investors went on a buying spree following the government move to allow investment of undisclosed money in stocks.
The benchmark general index of Dhaka Stock Exchange, or DGEN, had gained 194.57 points, or 3.18 per cent, over the past week to finish at 6,311.80 points, against 269.97 points gained in the previous week.
The average daily turnover in the week rose by 35.00 per cent to Tk 1,080.76 crore from that of Tk 800.55 crore in the previous week.
The National Board of Revenue on Tuesday announced that the investors of undisclosed money in stocks must keep it in the capital market till June 2013 to avail the opportunity of legalising it by paying a 10 per cent tax.
Market insiders said an active participation of institutional investors, with individual investors following suit, surged the turnover of the bourse in the past week.
They said the recent extension of the deadline for the commercial banks to bring their exposure in the capital market within the limit and reassess their credit-deposit ratio on source fund offered by the Bangladesh Bank also brought the institutional investors to the trading floor.
Individual investors have also been gradually regaining their confidence in the market after the government decision to allow investment of undisclosed money in stock investments, they added.
'Increased institutional participation, with individual investors following suit, boosted the turnover in the past week,' said a stockbroker.
He said, 'Institutional investors came out of their cocoons as the BB's measures prevented the situation from becoming worse for them.'
He also said, 'After the government accommodated the long-standing demand of the equities market stakeholders to allow investment of undisclosed money in stocks, it sent the message to the investors that the government was really concerned about and willing to stabilise the market.'
Of the five trading days of the week, the DGEN slid a little on one and rose on the remaining four days.
The turnover of the bourse on Sunday crossed the Tk 1,100-crore mark again after two and a half months, with the DGEN adding 40.28 points, or 0.65 per cent, following the government decision to allow investment of undisclosed money in the equities market.
On Monday, the index fell by 33.06 points, or 0.53 per cent, on a profit-taking selling pressure after a five-day bull run. The turnover on the day also dropped to Tk 881.77 crore.
Dhaka stocks rebounded on Tuesday amid volatile trading, with the DGEN gaining 40.81 points, or 0.66 per cent. But, the turnover of the bourse dropped to Tk 875.60 crore on the day.
On Wednesday, the index posted a sharp rise of 78.07 points, or 1.26 per cent, with the turnover crossing the Tk 1,000-crore mark again in the week amounting to Tk 1,158.63 crore.
The index on Thursday made another jump of 68.47 points, or 1.09 per cent, with the turnover hitting a three-and-a-half-month high of Tk 1,348.33 crore, as the investors continued with the post-budget buying binge.
Of the 263 issues traded in the week, 225 advanced, 35 declined, and five remained unchanged.
Beximco topped the turnover leaders, with shares worth Tk 169.16 crore changing hands. The other top-10 turnover leaders of the week were One Bank, MI Cement Factory, United Commercial Bank, Aftab Automobiles, Social Islamic Bank, United Airways, City Bank, National Bank, Peoples Leasing & Financial Services.
Source : New Age
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