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Dhaka bourse best Asian performer in August
Publication Date : 24-09-2012
The Dhaka Stock Exchange became the best performer in Asia in August, surging 6.90 per cent in the month, according to Bloomberg data.
Pakistan's Karachi 100 Index was the second best performer with a 5.14 per cent rise.
“Improvement in investor sentiment and a flexible liquidity situation contributed to the increasing market activities in August, said Md Ashaduzaman Riadh, head of the research department at LankaBangla Securities.
Improved macroeconomic variables also boosted the investor sentiment, said Riadh.
Overall inflation declined by 0.10 percentage point to 7.93 per cent in August, according to data from Bangladesh Bureau of Statistics.
“Also investors had high optimism about the revival of the World Bank agreement for financing the Padma bridge project that gave sentimental premium to the benchmark index of the Dhaka bourse,” said Riadh.
The liquidity crisis in the money market also eased due to a record remittance inflow ahead of the Eid festival that ensured more institutional participation in the market, he said.
“A stable outlook for the macroeconomy and steady growth in remittances contributed to a boom in August,” said Muhammed Rahmat Pasha, chief executive officer at BRAC EPL Stock Brokerage.
Remittance inflow in August increased 6 per cent to US$1.10 billion, compared to the same month a year ago.
Export growth in July also boosted investor confidence in August, said Pasha.
In July, exports rose by 4.26 per cent to $2.43 billion compared to the same month last year, according to data of the Export Promotion Bureau.
Most of the sectors were attractive for taking a fresh position on the market, he said.
Liquidity apparently increased in the money market, thanks to a low call money rate, Pasha said.
Call money rate fluctuated between 14 per cent and 16 per cent in August.
The benchmark General Index of the Dhaka bourse closed at 4,800 points yesterday, after surging 121 points or 2.59 per cent.