Stocks witnessed an upward trend in the early hours of trading on Tuesday as optimistic investors were showing appetite on sector-wise issues riding on the news of interest rate cut on stock investment fund.
After crossing the ‘psychotically’ threshold of 5,000-mark on the previous day, the Dhaka Stock Exchange (DSE) opened higher today with the key index rising 22 points within first 15 minutes of trading.
After first 30 minutes of trading, the DSEX gained more than 18 points when the report was filed.
DSEX, the prime index of the DSE, went up by 18.13 points or 0.36 per cent to reach 5,021 points at 10:30am.
The DS30 index, comprising blue chips, also advanced 5.52 points to reach at 1,718 and the Shariah Index (DSES) rose 2.16 points to reach 1,133 points till then.
Turnover, one of the important indicators of the market, stood at Tk 1.84 billion when the report was filed at 10:30am.
Market operators said the investors went on buying binge on major sectors stocks following the news of interest rate cut on stock investment fund.
Bangladesh Bank has reduced the interest rate on borrowing from its special investment fund to 4.75 per cent from 5.0 per cent, aimed at helping the country’s lenders increase their stock investment capacity.
Investors’ expectation about the market remained positive as they kept on taking fresh positions in sector-wise stocks amid hopes of better return, said a merchant banker.
Of the issues traded till filing of this, 226 advanced, 67 declined and 38 remained unchanged.
Paramount Textile was the most traded stock till then with shares worth Tk 204 million changing hands, closely followed by Beximco, Beximco Pharma, Nitol Insurance and Sandhani Life Insurance.
The port city bourse – the Chittagong Stock Exchange – (CSE) also saw a positive trend till then with CSE All Share Price Index (CASPI) gaining 19 points to stand at 14,318, also at 10:30am.
The Selective Categories Index (CSCX) also gained 10 points to reach 8,592 at that time.
Of the issues traded till then, 75 gained, 26 declined, and 19 issues remained unchanged with Tk 27 million in turnover.