Dhaka stocks surge more than 3.30% in 2 hours

Dhaka stocks opened the New Year on a high note as investors reacted positively to the series of positive news on vaccination, rolling out stimulus packages and falling interest rates.

Two hours into the trade on Sunday, the benchmark DSEX rose by nearly 175 points or 3.23 per cent to 5,577. It hit an 18 months peak in the previous session.

Other indices, the DSES edged over 14 points or  nearly 4 percent and blue-chip DS30 jumped 97points or nearly 5 percent.

Majority of issues rallied. Out of issues so far traded, 264 advanced, 45 declined and 49 remained unchanged.

A host of regions buoyed investor sentiment and helped shares continue to rally, said an analyst citing falling interest rate, vaccination progress and stimulus package implementation.

But as the market buoyancy continues, profit-booking is inevitable from an overbought market, he added.

A decrease in interest rates may prompt investors to move funds from the money market to the equity market. When interest rates have fallen significantly, consumers and businesses increase spending, causing stocks to rise.

In April, the government announced Tk121,353 crore worth of stimulus packages to support the pandemic-damaged economy. Almost half of the fund was given out so far, according to a recent finance ministry report.

The government is set to pour more funds to revive the economy faster than expected.

On Saturday, DGHS Director General ABM Khurshid Alam said the first consignment worth Tk 50 lakh would be sent tomorrow to bring the vaccine from India in January.