Stocks end higher after Eid holiday

Indices of the country's two main bourses witnessed a higher growth at the end of the trading session today after a three-day Eid holiday.

Meanwhile, the turnover of the Dhaka Stock Exchange (DSE) trading floor also leaped by 15 percent to Tk672.36crore.

All the official activities on the bourses remained closed from July 31 to August 2 on the occasion of the Eid-ul-Adha.

According to a brokerage firm review, indices of both stock exchanges steadily moved up today in the first session.

The expansionary monetary policy is largely responsible for the boost in the market turnover as it is widely expected that risk-free rates will go down and money circulation is increased. The central bank's measures will increase equity valuation and encourage flow of money to the stock.

The central bank last week declared monetary policy for the next six months. In its policy, the bank rate was brought down to 4 percent from 5 percent.

It also proposed a cut in the repo rate from 5.25 percent to 4.75 percent and reverse repo rate from 4.75 percent to 4 percent to make funds available for banks at a cheaper rate.

The central bank also set private sector credit growth 14.8 percent and public sector credit growth 44.4 percent in the monetary policy.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), has jumped by 57.38 points – or 1.1.36 percent - to reach at 4,271.

Moreover, the Shariah-based DSES index gained 16.63 points to settle at 993 and the blue-chip index DS30 rose by 22.14 points to stand at 1,442.

Out of the 354 issues traded during the same time frame, 192 companies' share prices advanced, 62 declined, and 101 remained unchanged.

Meanwhile, in the corresponding period, the benchmark index CASPI at the Chittagong Stock Exchange (CSE) has increased 166 points to close at 12,123.