Soaring dollar hinders market recovery
Dhaka stocks witnessed a significant upsurge in the early hours of trading but were unable to maintain the morning optimism as some investors opted for booking profits
Stocks opened the trading session on Tuesday with strong upward momentum to continue the recovery initiated on Monday.
But the session ended with moderate progress as the market price of the US dollar hit a record high of Tk112 and stock investors went cautious within 90 minutes of the opening.
Dhaka stocks witnessed a significant upsurge in the early hours of trading, riding on some recent regulatory moves, but were unable to maintain the morning optimism as some investors perceived it as a profit-booking opportunity amidst a bleak macroeconomic outlook, wrote EBL Securities in its daily market commentary.
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DSEX, the broad-based index of the Dhaka Stock Exchange (DSE) climbed to 6,185 in the morning and a downward pressure finally pushed the index to close at 6,112, which was 0.48% higher than the previous close.
The major index of the premier bourse, hitting a 13-month low of 5,985 had bounced back to close above 6,082 on Monday as investors were counting on the regulator's interventions to encourage big investors to buy more of the undervalued shares instead of selling.
Also, the Ukraine-Russia agreement to resume grain exports from the warzone had raised investors' hope for an ease in the global economic suffocation.
The Bangladesh Securities and Exchange Commission (BSEC) organised a seminar on Monday in partnership with the Ministry of Foreign Affairs and Bloomberg LP in continuation of its country branding among the investors at home and abroad.
Despite the common pressures of soaring inflation and deteriorating exchange rates, which the whole developing world is facing nowadays, Bangladesh offers a good investment opportunity, speakers said in the seminar.
Prime minister's Private Industry and Investment Adviser Salman F Rahman hoped the global oil price should not sustain at the current high level and by the end of this year, a tolerable fuel price would ease the pressure on the country's inflation and exchange rate.
In the seminar titled "Attracting New Talent and Investment" Bloomberg Media's regional head Andrew Boggs as the keynote speaker presented the strengths of Bangladesh as a recipient of investments, while BSEC Chairman Professor Shibli Rubayat-Ul-Islam said the country needs to fill the investment gap to achieve the sustainable development goals.
Speakers highlighted Bangladesh's flourishing sectors and the talents within.
British High Commissioner Robert Chatterton Dickson mentioned his country's investments in the growth story of Bangladesh.
Reflecting increased confidence in the stock market, investors' participation in the daily trading of the DSE increased by 31% to Tk838 crore on Tuesday.
The Chittagong Stock Exchange (CSE) indices also settled in the green terrain.
