Stocks gained after a three-day freefall as the Securities and Exchange Commission (SEC) finally approved the registration of Bangladesh Fund, which will enter the market today.
The benchmark general index of Dhaka Stock Exchange advanced 107 points, or 1.83 percent, to close at 5,973 points, while the selective categories index of Chittagong Stock Exchange gained 169 points, or 1.60 percent, to close at 10,730.
But the turnover at the Dhaka Stock Exchange (DSE) hit a three-month low as it stood atTk 381 crore, down by Tk 71.60 crore from the previous day. The daily turnover wasTk206 crore on January 25.
Of the total 243 issues traded on the DSE floor, 216 advanced, 26 declined and one remained unchanged.
Meanwhile, the SEC approved the registration of Bangladesh Fund yesterday. As a result, the Investment Corporation of Bangladesh (ICB) will be able to invest the fund to buy shares.
"We finally approved the registration of the Bangladesh Fund for the interest of
the market,” said Yasin Ali, an SEC member. “Bangladesh fund will play a good role to stabilise the market,” he added.
Md Fayekuzzaman, managing director of ICB, said: “We received the document of the registration from the SEC.”
The ICB will invest the fund from today, he added. Earlier on March 6, the ICB, along with seven other state enterprises, decided to give a massive liquidity support to the shrivelling stockmarket by forming aTk5,000 crore fund.
Eight state-owned financial institutions will sponsor Tk 1,500 crore, while the rest of the fund will be raised from institutions and individuals.
Yesterday, most of the investors started buying shares, hoping that share prices will gain when the Bangladesh Fund starts to roll, said a market insider.
However, seven companies failed to submit their quarterly accounts for the third quarter that ended on March 31: BDCOM Online Ltd, Bangladesh Shipping Corporation, Imam Button Industries Ltd, Jamuna Oil Company Ltd, Meghna Petroleum Ltd, Miracle Industries Ltd, and Northern Jute Manufacturing Company Ltd.