Turnover at the Dhaka Stock Exchange (DSE) crossed Tk 6.00 billion for the first time in history, lifted by the central bank's short term interest rate cut that signalled easing of credit for the private sectors.
Manufacturing, power and pharmaceutical shares responded to the Bangladesh Bank's adoption of expansionary monetary policy as they boosted the turnover to Tk 6.12 billion, up from the previous record of Tk5.90 billion set on October 12 last year.
The benchmark index DSE General Index (DGEN) began the day with a gain of over 16 points but closed a minus 1.53 points to 2653.11, dragged down by several heavyweight stocks of banks and insurance companies.
Analysts said the massive fund flow was due to the central bank's interest rate cut on repurchase agreement (repo) and the government's announcement that it might allow whitening of undisclosed income.
"Yesterday's repo rate cut by central bank changed the mood completely this morning," said M Fazlur Rahman, deputy managing director of the AB Bank Limited.
"Both institutional and retail investors poured fund on stocks pushing up the turnover to a new height. The bullish trend was aided by National Board of Revenue (NBR)'s hints that it would allow legalising undisclosed income," he added.
Bangladesh Bank Tuesday cut its repo rate, a key short term interest rate through which it lends fund to the banks, by 25 basis points to 8.50 after seven months, easing lending to private sector to offset impact of global economic recession.
The All Shares Price Index (DSI) ended at 2206.18 with a drop of 1.86 points and the DSE-20 blue chip index finished at 2653.11 with a gain of 3.33 points.
Shares of insurances declined amid profit taking while banks and mutual funds dropped on price corrections, brokers said.
But stock prices of companies with low paid up capital continued to rise, indicating that some foul-plays might be at work, they said.
"It's a very unhealthy sign because it may lead to burning of some fingers," a broker said.
DSE authorities, however, welcomed the record turnover as a healthy sign of the economy and a maturity in the market.
"The turnover hit a record high, yet the index slightly fell. It shows the depth in our stock markets and signs that the market is becoming more matured," said DSE president Rakibur Rahman.
Out of a total of 259 issues traded, 131 gained, 120 declined and eight remained unchanged. Market capitalisation remained steady at Tk 1.02 trillion.
Shinepukur Ceramics was the top turnover leader with shares worth Tk 362.05 million traded, followed by S Alam Cold Rolled Steel Mills Limited worth Tk 345.12 million, Summit Power Tk 306.19 million and Beximco Pharma Tk 211.61 million.
Share prices of the S Alam Cold Rolled Steel Mills Limited made the biggest gain of 17.74 per cent.
The day's other gainers were Ambee Pharma, Dhaka Fisheries, Beximco Synthetic, Standard Cement, Anlima Yarn and EHL.
The day's top losers were Dhaka Bank, BD Luggage, IDLC, Sreepur Textile and Purabi General Insurance.
DSE turnover sets new record boosted by BB repo rate cut
Kayes M Sohel | Published: March 13, 2009 00:00:00 | Updated: February 01, 2018 00:00:00
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