Stock market indices rise, analysts credit it with political stability, prop-up measures

Stock market indices rise, analysts credit it with political stability, prop-up measures

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Dhaka Stock Exchange (DSE) has seen a 3.7 percent rise in its broad index defying the slump over the last few weeks.The capital market last week showed signs of recovery following assurance from Securities and Exchange Commission to aid broker houses and merchant banks in a bid to stabilise the bourses.The first week of the month saw DSEX fall by nearly a thousand points to 3,959 points.The DSE index fell by 87 points on the first trading day of last week but went up by 54, 75 and 32 points respectively over the next three days.On Sunday, it rose by 154 points to stand at 4,277 points.The Chittagong Stock Exchange’s key index CASPI saw a 488-point rise on Sunday to hit 13,183 points. DSE turnover was Tk 5.21 billion, a Tk 1.01 billion rise from the previous trading day.The CSE saw shares and mutual funds worth Tk 430 million changing hands, a Tk 50 million fall in turnover from the previous day.Share prices of 289 companies and mutual funds rose, 17 fell and three remained unchanged on DSE.On CSE, 236 rose, seven fell and three remained unchanged.Former SEC chief AB Mirza Azizul Islam told bdnews24.com it was difficult to predict how Bangladesh’s capital market would behave since it did not follow general trends.He pointed out two plausible factors working behind the rise.“In the current scenario, political instability does not seem to be set in in the near future. This is working to restore investors’ confidence.“Another factor has brought back hope. That is the regular sitting involving the market controller, the two exchanges, merchant banks and brokerage houses.“They seem very active and that is bringing back activity in the market after the long slump,” Islam added. He added assurances to prop up the ailing market like raising tax-free ceilings of profits are also drawing back investors.

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