FE Report
Stocks rebounded Monday with higher participation as investors went on buying spree following the news of Finance Minister's proposal to extend timeframe of banks' capital market over-exposure adjustment.
The market opened with a flying note and the upward momentum continued till end of the session. DSEX, the benchmark index of the Dhaka Stock Exchange (DSE) went up by 51.60 points or 1.16 per cent to settle at 4,475.81.
Finance Minister AMA Muhith said Sunday the government will extend the timeframe for adjusting commercial banks' over-exposure to the capital market by two more years.Stocks rebound with high turnover, Muhiths speech spurs prices
As per Finance Minister's proposal, the banks will get time to adjust their over exposure to capital market till July, 2018. As per present deadline set in Bank Companies Act, the banks will have to adjust their over exposure to capital market by July, 2016.
Capital market stakeholders, including merchant banks and stockbrokers, have long been requesting the government to extend the deadline as many investors fear of sale pressure from banks to bring down capital market exposure to allowable level by July 2016.
The Finance Minister Sunday also acknowledged that the capital market is being affected by the provision and there is a great pressure on commercial banks to reduce their exposure by July 2016.
LankaBangla Securities, a stockbroker, said, "Stocks bucked the trend with sharp move after previous day's mixed performance amid hope on government's approval of the timeframe extension proposal on adjusting the banks' over-exposure to the capital market".
The stockbroker noted that the market made a significant move as investors found some comfort from the assurance of Finance Minister that the government will extend the timeframe for adjusting commercial banks' over-exposure to the capital market by two more years.
Turnover, another important indicator of the market, also crossed Tk 4.0 billion-mark after two weeks and amounted to Tk 4.15 billion, which was 87 per cent higher than the previous day's eight months' lowest turnover of Tk 2.21 billion.
"The market sparked up at the news of finance mister's intention to propose an extension of two years for banks to lower their stock market exposure to allowable level," IDLC Investments, a merchant bank, said in an analysis.
"The comment revitalized the market from previous day's activities draught and a prolonged declining trend in the market starting from October that cost over 400 points from the broad index," said the merchant bank.
Sheltech Brokerage, a stockbroker, said, "The market started with a positive pace as a reflection of Finance Minister's declaration of extending the timeframe for adjusting commercial banks' over-exposure to the capital market by two more years".
The port city bourse Chittagong Stock Exchange (CSE) closed higher with its Selective Categories Index - CSCX - gaining 82.32 points to end at 8,310.85.
Gainers beat losers 174 to 40 with 20 issues remaining unchanged on the port city bourse that traded 8.96 million shares and mutual fund units with a value of Tk 255 million.
babulfexpress@gmail.com
Stocks rebounded Monday with higher participation as investors went on buying spree following the news of Finance Minister's proposal to extend timeframe of banks' capital market over-exposure adjustment.
The market opened with a flying note and the upward momentum continued till end of the session. DSEX, the benchmark index of the Dhaka Stock Exchange (DSE) went up by 51.60 points or 1.16 per cent to settle at 4,475.81.
Finance Minister AMA Muhith said Sunday the government will extend the timeframe for adjusting commercial banks' over-exposure to the capital market by two more years.Stocks rebound with high turnover, Muhiths speech spurs prices
As per Finance Minister's proposal, the banks will get time to adjust their over exposure to capital market till July, 2018. As per present deadline set in Bank Companies Act, the banks will have to adjust their over exposure to capital market by July, 2016.
Capital market stakeholders, including merchant banks and stockbrokers, have long been requesting the government to extend the deadline as many investors fear of sale pressure from banks to bring down capital market exposure to allowable level by July 2016.
The Finance Minister Sunday also acknowledged that the capital market is being affected by the provision and there is a great pressure on commercial banks to reduce their exposure by July 2016.
LankaBangla Securities, a stockbroker, said, "Stocks bucked the trend with sharp move after previous day's mixed performance amid hope on government's approval of the timeframe extension proposal on adjusting the banks' over-exposure to the capital market".
The stockbroker noted that the market made a significant move as investors found some comfort from the assurance of Finance Minister that the government will extend the timeframe for adjusting commercial banks' over-exposure to the capital market by two more years.
Turnover, another important indicator of the market, also crossed Tk 4.0 billion-mark after two weeks and amounted to Tk 4.15 billion, which was 87 per cent higher than the previous day's eight months' lowest turnover of Tk 2.21 billion.
"The market sparked up at the news of finance mister's intention to propose an extension of two years for banks to lower their stock market exposure to allowable level," IDLC Investments, a merchant bank, said in an analysis.
"The comment revitalized the market from previous day's activities draught and a prolonged declining trend in the market starting from October that cost over 400 points from the broad index," said the merchant bank.
Sheltech Brokerage, a stockbroker, said, "The market started with a positive pace as a reflection of Finance Minister's declaration of extending the timeframe for adjusting commercial banks' over-exposure to the capital market by two more years".
The port city bourse Chittagong Stock Exchange (CSE) closed higher with its Selective Categories Index - CSCX - gaining 82.32 points to end at 8,310.85.
Gainers beat losers 174 to 40 with 20 issues remaining unchanged on the port city bourse that traded 8.96 million shares and mutual fund units with a value of Tk 255 million.
babulfexpress@gmail.com
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