STOCKS extended their winning streak for the third session in a row Tuesday, with turnover crossing Tk 8 billion-mark again, as investors continued to inject fresh funds into the stocks amid growing optimism. Turnover on Dhaka Stock Exchange crossed the benchmark for the first time in the last seven months amid a gradual revival of investor confidence as a sense of receding political tension is developed. The DSE index rose closer to 4,450 yesterday; down from below 4,000 during City Corporation election. Market operators said that the investors were sensing no immediate escalation of political tension as the BNP-led opposition after the City Corporation elections backtracked from mounting anti-government movement. Depending on the sign of political stability, investors are again injecting capital into the market, but as the real stability is still not in sight, the risk to investing in the stocks still not totally ruled out. The fear of the return of gamblers is also there. Here the role of the Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank, along with vigilance of the government intelligence services is all the more important to protect small investors from predators’ hands.
News outlets reported that the turnover, an important indicator of the market, was at Tk 8.08 billion at the end of the day’s trading, after increasing 7.26 percent from the previous day market index. The turnover on the premier bourse was Tk 8.46 billion on November 12 and then it nose-dived from early January when nationwide blockade hits the country. The capital market seemed to be attracting more funds from the money market as returns from fixed income instruments fell and equities had gone dirt-cheap. DSEX, benchmark index leaped forward over this entire week as a bullish stance in the capital market has lured more buyers with fresh funds.
Analysts said the market witnessed strong buying pressure, mostly from institutions as the apparent persistence of positive sessions pulling previously inactive investors. They said that the revival of investors’ confidence backed by the continued gaining spell and increased participation from the sideline helped the market but question is larking as to how the trend may be sustained over the longer term.
Politics has a clear link with stock market in everywhere. It is advisable that the market regulator must do everything to lure foreign fund back to the stock, which left the bourse during the last several months volatile politics. Moreover the government must take into consideration that reviving stock market needs returning investors confidence and it must do everything in this respect. People tend to believe that a democratic regime can only provide political stability and accountability; which can in turn keep the bourse steadily functional and protect it from swindlers.
