The prime index of the Dhaka Stock Exchange (DSE) surpassed the 6,100-point mark on Monday, hitting nearly 41-month high, as floor price removal boosted confidence of investors in putting fresh bets on stocks.
DSEX, the prime index of the DSE, rose 56 points or 0.92 per cent to settle at 6,125, highest since January 30, 2018, when the DSEX was at 6,127.
Market capitalisation of the prime bourse also soared to an all-time high at Tk 5,130 billion on Monday, surpassing the previous high of Tk 5,099 billion recorded just a week before.
Turnover, a crucial indicator of the market, also jumped to Tk 20.43 billion on the country's premier bourse, in a further buck by 11 per cent over the previous day's tally of Tk 18.35 billion.
Market analysts said the institutional investors got their confidence back after the removal of the floor price restriction from all listed securities by the stock market regulator.
The country's stock market returned to the standard price movement system from Sunday, as the securities regulator lifted floor price restriction of all listed securities, set earlier to stop sharp price fall amid the pandemic.
The investors and stakeholders welcomed the regulatory decision, saying the move was taken at the right time.
"On the second day of floor price removal, most of the stocks have logged gains which depicted heightened confidence of investors on the market," commented EBL Securities, in its regular market analysis.
The stockbroker noted that buy dominance on large-cap sectors like banking, financial institutions and textile accelerated the upward drive while the hyped-up insurance stocks saw immense sell pressure on the bourse.
Budgetary measures, lower returns on the money market and regulatory reforms encouraged investors to park fresh funds on stocks, Khairul Bashar Abu Taher Mohammed, CEO of MTB Capita, told the FE.
He noted that removal of floor price of all listed securities is a timely decision by the stock market regulator.
He said many general investors feared that the market would drop after the decision was implemented, but this did not happen as institutional investors are active in the market.
The investors showed their buying appetite on major sector stocks due to floor price removal and positive movement of some macro-economic indicators, he said.
Mr Bashar, also former secretary general of Bangladesh Merchant Bankers Association, said many investors are also making fresh investments in stocks to avail tax benefits in the outgoing fiscal.
The special facility to legalise undisclosed income is likely to continue in the next fiscal year which also have a positive impact on the market, he added.
The investors kept their buying interest on the major sectors, particularly in banking, financial institutions, textile and food sectors which led the benchmark index to cross 6,100 points, commented International Leasing Securities.
© 2024 - All Rights with The Financial Express
