The daily turnover of the bourse, however, hit three and a half months low to Tk 381.44 crore as buyers remained cautious and took a wait-and-see policy to watch the
impact of the fund in the coming days.
The benchmark general index of the Dhaka Stock Exchange, or DGEN, gained 107.38 points or 1.83 percent on the day to close at 5,973.09 points.
'The market rose as the jittery investors stopped panic selling as they hoped that the market would rise once the Bangladesh Fund starts operation on Thursday [today],' said a stock broker.
He said some retail investors bought shares hoping they would gain from the purchase as the prices of many of issues were low, but the institutional investors remained almost inactive as they wanted to witness the impact of the fund.
As a result, turnover fell by Tk 72 crore from the previous day. Wednesday's turnover hit a four-month low as the turnover on January 25 was Tk 206.41 crore.
The market had been in a damp mood for three sessions before Wednesday because of rumours about the uncertainty of Bangladesh Fund and restructuring of SEC.
Kazi Sabbir Kamal, an investor, said, 'The fund can help to a great extent to support the market as the volume of it is very large. We hope that the initiators of the fund will perform the role they declared.'
But some investors were still skeptical about the impact of the fund as other issues like restructuring of SEC and the government move on the January's stock market debacle probe report were yet to be settled.
Out of 248 traded issues on the day, 216 advanced while 26 declined and one remained unchanged.
Market experts observed that the Bangladesh Fund could be a great addition for the capital market in the long run if it is used properly.
Salahuddin Ahmed Khan, a professor of Dhaka University, said, 'If the Bangladesh Fund can perform as it is expected to, it can be helpful for the market.'
Capital market analyst, Akter H Sannamat, said, 'The Bangladesh Fund is welcome but proper utilization of the fund should be ensured to get the expected result from it.'
' Source: New Age
