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DSE : Stock Market attains Stability |
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July 29, 2000
Dhaka (UNB) - Dhaka Stock Exchange experienced a steady growth last week to stabilise the recent upswing after the 1996 jolts to an overheating capital market. Officials claimed the market stabilised in the week while analysts observed it “perhaps stopped the unusual but controlled trading.” The benchmark index started jumping from the beginning of the month to continue the uptrend till closing of the second week, but fell sharply on the third week, showing an unusual market trend. However, market analysts said the trend of last week’s trading was a good sign for the market. The all share price index at the country’s main bourse registered 12.79 points or 2.06 per cent up to close the week’s trading at 632.23 on Thursday. The benchmark index of the previous week closed at 619.44 points. The week’s trading began with a nosedive Saturday to close the day’s index 33.23-point lower due to selling pressure, but recovered on the two consecutive days a total of 44.94 points. The DSE index lost again 15.06 points on Tuesday and rose the following days to close the week’s trading higher. Market sources said the recent ups and downs on the stockmarket were demand-supply controlled. It was observed that the market registered a nosedive under selling pressure and marked upturn with short supply of shares. This trend is likely to continue until more shares are coming to the capital market If you want a big push to the market, you will have to inject huge shares in it allowing more institutional investors to operate on the market, said an official of the DSE. He cautioned that a jump in the benchmark without more shares would be controlled or artificial one to exploit general public. Officials at the stockmarket watchdog Securities and Exchange Commission (SEC) said the unusual trend of the market stabilised last week amid rising confidence of the investors following SEC move with intensified surveillance to detect manipulation, if any. The SEC surveillance team is yet to detect any activities on the market beyond the rules and regulations, they said. They mentioned that the SEC decided on principle to allow commercial banks to operate on the capital market like merchant banks to bring more institutional banks to lay a stake on the securities bazaar. The commercial banks, both listed and unlisted with the stock exchanges, and foreign banks in separate meetings with the SEC showed their interest to operate in stock trade. Striking a further optimistic note, meanwhile, the Investment Corporation of Bangladesh (ICB) on Thursday informed a meeting of the parliamentary standing committee on Finance Ministry that it would float Tk 100 million 9th mutual fund to ensure smooth demand and supply on the capital market. |