Dhaka stocks on Monday made a strong rebound after Sunday's fall as investors went on a buying binge following the prime minister's assurance that the government would consider the demand of the bourses for allowing legalisation of undisclosed money for investment in the capital market.
Federation of Bangladesh Chambers of Commerce and Industry president AK Azad on Sunday said they had requested the prime minister, Sheikh Hasina, to include in the budget for fiscal 2011-2012 a provision allowing investment of undisclosed money in the equities market and she had assured them that the government would consider the demand.
In the meeting with the leaders of different trade bodies, the prime minister also assured them of considering their demand for reducing the corporate tax imposed on banks.
The DGEN, the benchmark index of Dhaka Stock Exchange, gained 92.92 points, or 1.59 per cent, on Monday to close at 5,934.17 points. The index had suffered a marginal drop on the previous day.
Turnover of the bourse on the day increased to Tk 831.91 crore, up by Tk 325 crore from that of the previous day.
A DSE stockbroker said, 'Both retail and institutional investors were active on the market today.' Banks were the highest gainer on the day as the investors, encouraged by the prime minister's assurance of considering the demand for reducing the corporate tax imposed on banks, bought their shares heavily, he said.
AIMS Bangladesh Ltd managing director Yawer Sayeed said, 'The market surged today as almost all the institutional investors became active.'
'The retailers also followed them and the increased participation of investors led to a higher turnover,' he said.
Of the 253 issues traded on Monday, 178 advanced, 62 declined, and 13 remained unchanged.
Southeast Bank topped the turnover leaders of the day with Tk 42.87 crore. The rest of the top-10 turnover leaders were United Commercial Bank, Prime Bank, MI Cements, One Bank, City Bank, National Bank, MJL Bangladesh, and LankaBangla Finance.
Source : New Age
