Stocks rise on new monetary policy

Stocks gained by 3.86 percent yesterday as the announcement of the new expansionary monetary policy sent the investors into an upbeat mood.
DGEN, the benchmark index of Dhaka Stock Exchange (DSE), finished the day at 4,183.32 points, after gaining 155.52 points.
“This is a stockmarket friendly monetary policy,” said Rakibur Rahman, president of DSE.
Although the new monetary policy, in essence, is simply continuation of the existing one, investors' mood was still lifted, said IDLC Securities in its market research.
Bangladesh Bank's decision to increase the private sector credit growth to 18.3 percent from 16 percent is most likely to increase the credit flow into the capital market, the report added.
“The new monetary policy suggested of accommodation of private sector credit growth and reining-in of government borrowings to a more rational level,” said LankaBangla Securities in its market commentary.
Turnover rose by 67.7 percent in comparison to previous day, to Tk 204 crore.
A total of 0.72 lakh trades were executed on the DSE, with 4.76 crore shares and mutual fund units changing hands.
Of the 268 issues that traded on the day, 255 advanced, 9 declined and 4 remained unchanged.
All major sectors gained on the day, with non-bank financial institutions rising by 5.78 percent, general insurance by 5.76 percent, engineering 5.62 percent, cement 5.44 percent, textile 4.62 percent and power 4.58 percent.
Grameenphone was the most traded stocks chart owing to its transactions of 5.8 lakh shares worth Tk 11.7 crore.
Salvo Chemical Industry was the biggest gainer of the day, rising by 10 percent, while LR Global Bangladesh Mutual Fund, by plunging by 3 percent, was the worst loser of the day.