Yield rate cut on savings instruments propels stocks’ rally

Turnover value on the Dhaka Stock Exchange (DSE) reached Tk 5.96 billion Monday for the first time in 2015, hitting six months high due to strong buying pressure from the investors.
"The market witnessed strong buying pressure, mostly from institutions as continuous positive market trend boosted investors' confidence," said an analyst.
Interest rate cut on savings instruments, Commerce Minister Tofail Ahmed and ICT affairs adviser to Prime Minister Sajeeb Wazed Joy's recent positive comments on stock market have boosted investors' confidence, market insiders said.
Daily turnover stood at Tk 5.96 billion on DSE, registering an increase of 14.6 per cent over the previous session's Tk 5.20 billion. It was the highest turnover since Tk 6.27 billion reordered on November 18, last year.
Along with increasing turnover, the prime index of the DSE - DSEX, also crossed the 4,300-mark once again and ended at 4,349.22 points, soaring 72.16 points or 1.68 per cent.
DSEX recovered more than 389 points, after dipping below the major 'psychological' threshold of the 4,000-mark on May 4, as the market was on a steady gaining streak for the fifth sessions.
The two other indices also ended higher. The DS30 index, comprising blue chips, went up by 7.53 points or 0.46 per cent to close at 1,624.71 points. The DSE Shariah Index (DSES) gained 1.52 points or 0.14 per cent to close at 1,043.01 points.
International Leasing Securities, a stock broker said, "Continued gaining streak helped the investors to become confident to the market".
Possible interest rate cut on national savings certificates might be a reason for injecting more fresh funds in the market, said the International Leasing.
The port city bourse Chittagong Stock Exchange (CSE) also ended higher for the fifth day in a row with its Selective Categories Index - CSCX - rose 170.25 points to close at 8,181.13 points.
Gainers beat losers 176 to 62, with 12 issues remaining unchanged at the port city bourse that traded about 17.15 million shares and mutual fund units, and recorded a turnover of Tk 508.15 million.
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