Dhaka, Bangladesh (BBN)– Bangladesh’s stocks closed higher last week that ended on Thursday as investors were on buying spree on sector-wise stocks.
Brokers said investors put fresh stakes on stocks riding on the news that the deposit and lending rates of the banks would be slashed from July 1.
The banks will not take more than 9.0 percent interest on loans while they will give maximum 6.0 percent interest on three-month period deposits.
They said investors reacted positively to the news as the move would help to increase fund flow in the capital market some extent.
The week featured four trading sessions as the market closed Sunday due to Eid-ul-Fitr holidays. Of them, first session saw mild correction while last three ended higher.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 76.54 points to settle the week at 5,441.
“The market took the breath over the last few weeks riding on the news that the deposit and lending rates of the private commercial banks would be slashed from the beginning of the next fiscal year,” commented International Leasing Securities.
The stockbroker noted that lucrative price levels and upbeat market vibe tempted the sideline investors to inject fresh fund on stocks, taking the average turnover highest in 2018.
Two other indices of the DSE also ended higher. The DS30 index, comprising blue chips, gained more than 23 points to finish at 1,981 and the DSE Shariah index advanced 25 points to close at 1,263.
The Chittagong Stock Exchange (CSE) also finished higher with the CSE All Share Price Index – CASPI -advancing 281 points to settle at 16,786.
The Selective Categories Index – CSCX – also rose 176 points to close at 10,156.
Total turnover on the DSE also rose to BDT 26.57 billion last week, registering an increase of 102 percent, from BDT 13.15 billion in the week before.
The daily turnover averaged BDT 6.64 billion, which was more than 51 percent higher than the previous week’s average of BDT 4.38 billion.
According to EBL Securities, the banks’ interest rates cut news brought new hopes among investors as lower deposit rates to bring more investment in the capital market.
In another development, the government might reduce interest rate on savings certificates that might push many savers to the capital market, the stockbroker said.
Of the issues traded, 209 closed higher, 105 lower and 28 issues remained unchanged on the DSE floor.
Alif Industries was the week’s most traded stock with 12.44 million shares worth BDT 1.37 billion changing hands, closely followed by Khulna Power Company, Grameenphone, United Power and Pharma Aids.
BD Autocars was the week’s best performer, posting a gain of 42.96 percent while Meghna Condensed Milk was the worst loser, with 17.15 percent decline.