Notably, the relative downward trend in interest rates, especially for 364-day treasury bills also contributed to the increased transaction inflows by local investors on the domestic bourse month-on-month. The stop rate for 364-day T-bill fell to 6.80 per cent in August from 8.20 per cent at the end of July 2021; as at the last auction on September 29, 2021, stop rate stood at 7.50 per cent.
However, the impressive results of listed companies attracted investors to the stock market between July and August.“The rebound in the stock market was sustained because of steady increase in global oil prices. The recovery of the stock market could have been better but insecurity in the nation led to a hike in inflation rate and investors had to react negatively,” he said.