:: Peoples Time Online ::
The Dhaka Stock Exchange (DSE) has turned up its highest daily turnover in eight months on Tuesday.
The good market is mainly attributed to the banks’ decision to lower interest rates.
On July 10, the turnover of Tk1,088.19 crore was over 20% higher than Monday’s figure and was the biggest for a single day since November 21, 2017, when it exceeded Tk1,091 crore.
The engineering and textile sectors performed strong, which contributed 23.1% and 20.6% of the total turnover respectively.
The turnover chart for companies was topped by the newly-listed Bashundhara Paper Mills with 2.77 million shares worth Tk45.8 crore.
Analysts said the market was suffering from a liquidity crisis caused by a Bangladesh Bank regulatory measure to rein in aggressive loan disbursement of bank loans.
In response to the slump, the Bangladesh Association of Banks (BAB), a platform of private commercial banks’ owners, decided to lower rates on June 20. It brought down the interest rate on lending to 9% and the rate on deposits to 6%, effective from July 1.
At the same time, investor confidence has been boosted by the recent deal which made a Chinese consortium a strategic partner of the DSE.