Asian Tiger Capital Partners market update on DSE****

After three consecutive days of retracement the Benchmark General Index DGEN showed signs of reversal as the market gained 1.83%. News in the media that the BD Fund worth BDT 5000 crore will start investing in the market within a day or two was the primary reason for the rally, albeit at very thin trading volume. Upon resumption of trading, the market witnessed sharp volatility during the first half an hour before buying pressure led the Index to surge forward without any noticeable sign of pullback. Towards the last half an hour of trading the Index however, bounced back from 6000 level and was resting slightly above 5970 mark upon market closure having registered a gain of more than 107 points. Total transaction amounted to only BDT 3.81bn, which is 15.8% lower than previous day. Transaction amount continues to hit low figures every day as market faces tremendous scarcity of liquidity and inflow of fresh fund. The high depository rate on offer currently is a very plausible explanation for this liquidity crisis. All the sectors ended in the green zone as market witnessed buying pressure all across the board. Banking sector gained 1.7% whereas NBFI, Insurance and Fuel & Power sector appreciated by 2.6%, 2.5% and 1.2% respectively. Other prominent sectors like Textile, Cement and Food also registered gain of 2.6%, 2.1% and 1.2% respectively. The DGEN went up by 1.83% to close at 5973.09 points. The total transaction was worth BDT 3.81bn. Price of 216 Issues appreciated whereas 26 Issues declined and 1 other remained unchanged.