Stocks opened higher on Wednesday with the key index of the country's major bourse crossing the 7,300-mark as buoyant investors were buying selective large-cap shares riding on government moves to cut interest rates on new savings certificates.
The government on Tuesday decided to cut interest rates on new savings certificates investments, which may motivate savers to invest in the capital market for a higher return, market insiders said.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 47.13 points or 0.64 per cent to stand at 7,305 points within the first 30 minutes of trading at 10:30 am–the highest since its inception on January 27, 2013.
Two other DSE indices also saw an upward trend with the DS30 index, comprising blue chips, rose 15.83 points to reach 2,701 while the Shariah Index (DSES) gained 11.50 points to stand at 1,598 points till then.
Turnover, another important indicator of the market, stood at Tk 3.04 billion within the first 30 minutes of trading at 10:30 am.
Market experts said stocks extended their rally as buoyant investors were putting fresh bets on major stocks anticipating positive momentum ahead riding on lower interest rates and rate cuts on saving certificates.
Of the issues traded till then, 259 advanced, 60 declined and 41 remained unchanged on the DSE trading floor.
Orion Pharma was the most traded stock till the filing of this report with shares worth Tk 377 million changing hands, closely followed by Pacific Denims, Beximco, Makson Spinning g Mills and Paramount Textile.
The Chittagong Stock Exchange also opened higher with its All Shares Price Index (CASPI)—gaining 56 points to stand at 21,297 while the Selective Categories Index – CSCX gaining 32 points to reach 12,778, also at 10:30 am.
Of the issues traded till then 64 advanced, 20 declined and 9 remained unchanged with Tk 45 million in turnover.