Capitec's Growth Fund makes a flying debut

Capitec Grameen Bank Growth Fund made a flying trade debut on Tuesday on the bourses as its unit price rose to hit the upper limit circuit breaker.

The unit price jumped 10 per cent --- the highest allowable limit --- to close at Tk 11 each on the Dhaka Stock Exchange (DSE).

About 207 trades were executed with 1.13 million units changing hands. The turnover volume was Tk 12.48 million.

Before Tuesday trading, an inaugural session ---Ring the Bell Ceremony --- was held on the DSE premises where Professor Shibli Rubayat-Ul-Islam, chairman of the Bangladesh Securities and Exchange Commission was the chief guest.

BSEC Commissioner Dr Mizanur Rahman was present as a special guest, while Dr ATM Tariquzzaman, managing director of the DSE, gave a welcome speech.

The BSEC chairman said participation of institutional investors and new products were very much essential for a vibrant capital market as well as stability in the market.

The market needs further development for the country's sustainable economic growth, in which the mutual fund sector will play an important role, he said.

Economic activities will gain momentum after the national election, when the stock market would become a big source of funds to meet the demand, the BSEC chief said.

"If everyone works together, the mutual fund sector as well as the capital market will move forward," he said.

DSE Managing Director Mr Tariquzzaman said, "We believe the new fund will increase the interest of investors in the capital market as well as enhance the depth of the mutual fund sector."

Presently, Capitec is managing three open-ended mutual funds. Capitec Grameen Bank Growth Fund is the first close-ended fund of Capitec Asset Management.

Hasan Rahman, chairman of Capitec Asset Management, said the capital market was currently in a favorable position for investment and that the fund was launched at the right time.

"We will try to give maximum returns to the investors from this new fund," said Mr Rahman.

BSEC Commissioner Mizanur Rahman said, "We have approved of several mutual funds in the last three and a half years."

The size of the Capitec fund stood at nearly Tk 1.56 billion, less than the targeted size of Tk 2 billion, due to lower subscription by the general public.

Capitec Grameen Bank Growth Fund is the 37th close-ended fund on the stock exchanges.

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