Dhaka Stock Exchange last week continued to rally for the second consecutive week as investors shrugged off the rumours of a possible market collapse once the probe committee on January's stock market debacle submitted its report.
The benchmark general index of the bourse, DGEN, had gained 188.50 points, or 2.97 per cent, in the last week to close at 6,540.60 points.
The average daily turnover of the bourse also increased by 26.46 per cent to Tk 1,052.69 crore from that of Tk 832.43 crore of the previous week.
'Rumours about the content of the probe committee report abounded throughout the week. Investors, however, waved aside the rumours and went for heavy buying, hoping that share prices would rise, once the committee submitted its report,' said a stockbroker.
The probe committee headed by Krishi Bank chairman Khondoker Ibrahim Khaled handed over the report to finance minister Abul Maal Abdul Muhith on Thursday morning.
The committee blamed the Securities and Exchange Commission and a number of big market players for the January's crash.
Share prices, however, advanced on Thursday after investors heard another rumour on the grapevine that the government would not make public the names of the big players involved in market manipulation.
The trading on the bourse began amid a positive mood on Sunday, the opening day of the week, as the investors expected that the market would rise, following a news report published in the previous week that the government might allow investment of undisclosed money in the capital market as proposed by the Investment Corporation of Bangladesh.
The general index rose by 94.90 points, or 1.49 per cent, on the day.
The upbeat mood continued on Monday, with the DGEN gaining 88.87 more points, or 1.38 per cent.
The index, however, lost 80.07 points, or 1.23 per cent, on Tuesday, after rumours spread that the probe committee would name big players in
the report for the market crash and the market would crash again as the big players would stop trading.
The downfall continued on Wednesday with the DGEN inching down by 1.76 points, or 0.03 per cent before rebounding strongly on Thursday.
Out of 262 issues traded during the week, 176 advanced, 79 declined and seven issues remained unchanged.
'Although many of the investors went for heavy buying, some remained cautious last week. We will have to wait few more days to find out the impact on the trading of the probe committee report and the finance minister's announcement on Thursday evening that the government would
delete the big players' names from the probe committee report,' said the stockbroker.
Source: New Age
