Dhaka stocks bounce back
Dhaka stocks bounced back yesterday on the speculation that the central bank has backtracked from its move to cut banks' ceiling for loan-deposit ratio to 80.5 percent from existing 85 percent.
The Bangladesh Bank's move to lower the ceiling for loan-deposit ratio has affected the market badly over the last couple of weeks.
BB's announcement came at a meeting with the chief executives of banks early this month after it found that private sector credit growth reached 19 percent in November, higher than the target of 16.2 percent set for the first half of fiscal 2017-18.
DSEX, the benchmark general index of the Dhaka Stock Exchange, gained 25 points, or 0.40 percent, yesterday to close at 6,147. However, the turnover remained low due to the cautious stance of institutional and individual investors ahead of the upcoming monetary policy, scheduled to be announced next week. Turnover stood at Tk 344.35 crore, down 4.1 percent from the previous day. The market started the session on a positive note, adding more than 30 points within the first two hours of the trading session.
Among the major sectors, telecom, pharmaceuticals and chemicals, engineering, food and allied, and fuel and power advanced, while banks and non-banks remained flat. Square Pharmaceuticals was the most traded stock with its turnover of Tk 28.3 crore followed by Ifad Autos at Tk 15.16 crore.
"Institutional investors are waiting for the direction of the upcoming monetary policy," said a senior executive of a merchant bank. The market may witness volatility until the monetary policy announcement, he added.
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