Rumour about 'netting' turns stock mkt bullish

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FE Report
Stock prices on the Dhaka Stock Exchange (DSE) continued to rally for the second consecutive day Wednesday, thanks to strong rumour about reintroduction of netting facility and continued transfer of funds by small savers to stock market.
However, the market on Wednesday was not as bullish as that of the previous day when the DSE General Index (DGEN) recorded a whooping 70 points gain. The DGEN on Wednesday was up by about a half (34.48 points) of that of the previous day.
Talking to the FE, Chief Executive Officer (CEO) of DSE Salahuddin Ahmed Khan said the investors took a little bit of time to make adjustments with some corrective measures initiated by the Securities and Exchange Commission (SEC) and return to the market with fresh enthusiasm.
"But, the current upward trend in the market is a matter of observation. It is difficult to predict that the market will continue to behave this way," Khan said.
Market operators said there was a strong rumour for the last couple of days that the SEC might re-introduce the netting facility. The rumour had a positive impact on the market.
Besides, the investors were encouraged by the news that 49 per cent shares of the state-owned Meghna and Jamuna petroleum marketing companies will be offloaded soon, market operators said.
Market analysts found the present behaviour of the stock market unnatural in the context of soaring inflation and the current flood that has played havoc with life and properties in at least 38 districts.
They tend to believe that panicked by the present interim government's anti-corruption and anti-tax evasion drive, many small savers have diverted their investments in fixed deposits and savings instruments to the stock market that is globally considered safe haven for all types of funds.
On Wednesday, DSE General Index (DGEN), All Shares Price Index (DSI) and DSE-20 Index (DS20) gained 34.481 points, 26.002 points and 4.682 points to close at 2345.065, 1933.896 and 2039.520 respectively.
The total turnover was to Tk 1.268 billion on the day from that of Tk 1.149 billion of the previous day. The total market capitalisation also increased to Tk 542.852 billion from Tk 536.823 billion on the previous day.
Out of 208 traded issues, prices of 131 gained, 60 declined and 17 remained unchanged on the day.
The Summit Power continued to be the turnover leader with shares traded worth Tk 124.642 million followed by UCBL Tk 96.196 million, AB Bank Tk 95.455 million, Desco Tk 82.119 million, BRAC Bank Tk 72.022 million, Power Grid Tk 59.712 million, Apex Tannery Tk 33.931 million, Agni System Limited Tk 33.173 million, Social Investment Bank Tk 30.448 million and Southeast Bank Tk 28.415 million.