Heavy buy lifts stocks

Stocks edged up for a second day as investors yesterday started heavy buying following Bangladesh Bank's decision to extend the deadline for banks to trim their exposure to the stockmarket.
The benchmark general index of Dhaka Stock Exchange (DSE) gained 92 points, or 2.70 percent, to close at 5,489 points. The selective categories index of Chittagong Stock Exchange gained 166 points, or 1.71 percent, to close at 9,866 points.
Bangladesh Bank on Thursday extended the deadline for banks to cut its single borrower exposure limit by four months to December.
The prime index continued to rise in the first two hours after it recovered from its initial bearish mood. Later it hovered around the same level and closed positive at the end of the session.
The country's two bourses will stabilise slowly, as corrective measures to help the capital market are taken in the form of regulations and in the upcoming budget, said an industry insider.
Investors staged a sit-in in front of the DSE building in Mothijheel, seeking the prime minister's intervention to calm the market. They demanded some positive incentives in the upcoming budget.
The investors, agitating under the banner of 'Capital Market Unity Council', started the programme around 12:30pm and ended it at 3pm.
“We will continue our sit-in till the budget declaration,” said an investor.
“The regulator's declaration that tax identification numbers are not mandatory for continuing beneficiary ownership accounts also boosted the market,” said Prof Mahmood Osman Imam, who teaches finance at Dhaka University.
The market is yet to become stable, as the trading volume is low, said Imam, also a member of DSE index development committee.
He added that the appointment of two members for the Securities and Exchange Commission also pulled the market up.
In an effort to cool down the market, the regulator may go for some changes in the rules to help release large funds.
Both general insurance and life insurance gained more than 2 percent, while banks, non-bank financial institutions, fuel and power, telecommunication and pharmaceuticals gained more than 1 percent each.
Turnover on the DSE stood at Tk 330 crore, up Tk 34.49 crore from the previous day.
Of the total 261 issue traded on the DSE, 234 advanced, 25 declined and two remained unchanged.
However, the trading of National Tea Company resumes today on the DSE floor after a halt of one month in the wake of an unusual price hike.
The approval came after the DSE probe committee completed their investigation, which initially found some regulations in trading of shares of National Tea.