Dhaka stocks on Wednesday continued to gain for the third consecutive day following a fresh move of the parliamentary standing committee on finance ministry to recommend including a provision allowing investment of undisclosed money in the capital market in the next fiscal year's budget.
The benchmark general index of Dhaka Stock Exchange, or DGEN, advanced on the day by 63.11 points, or 1.09 per cent, to close at 5,808.20. The index had gained around 58 points in the previous two trading days.
Operators said the market continued to gain after the chairman of the parliamentary standing committee on finance ministry, AHM Mostafa Kamal, had announced on Tuesday that the committee would request finance minister AMA Muhith to allow legalisation of undisclosed money meant for investment in the equities market while finalising the proposed budget.
Although the Jatiya Sangsad body had already recommended allowing investment of undisclosed money in the capital market before the proposed budget was tabled in the parliament, Muhith did not include the provision in the proposed budget for fiscal 2011-12.
The market had witnessed a two-week gaining streak before the budget announcement as many of the investors hoped that the government would allow investment of undisclosed money in the capital market, considering its ongoing liquidity crisis.
The JS body will hold a meeting today with Muhith to request him to include the provision in the budget before its passage by June 30.
The trading on the DSE has been topsy-turvy since the announcement of the proposed national budget on June 9.
Operators said the market had been upbeat for two days before Wednesday as some of the investors went for buying on the anticipation that the market would find a liquidity boost following a central bank directive regarding commercial banks' lending.
Bangladesh Bank on Monday decided to allow the commercial banks to calculate the credit-deposit ratio considering other banks' deposits as a source of fund instead of excluding those deposits from the denominator.
Of the 260 issues traded on Wednesday, 205 advanced, 43 declined, and 12 remained unchanged.
The turnover, however, decreased to Tk 444.68 crore from Tk 456.86 crore on Tuesday.
Source : New Age
