Stocks continue rally
Stocks listed on the Dhaka bourse rallied for a second day yesterday as the market continued to rebound from a losing streak.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), gained 73 points, or 1 per cent, to hit 6,742 as a result.
At the DSE, 286 stocks advanced, 69 declined and 23 remained the same.
The regulatory measures for margin loans taken by the Bangladesh Securities and Exchange Commission (BSEC) attenuated the panic among investors and drove them to put money in sector-specific stocks, said International Leasing Securities in its daily market review.
The sinking market brought down the price of many sector specific shares that attracted bargain hunters for putting stakes with a hope for some capital gains, it said.
Among the sectors, cement rose 4.5 per cent, services 3.2 per cent and textile 2.8 per cent whereas miscellaneous dropped 1.7 per cent and jute shed 1.3 per cent.
As most of the stocks fell during the last few days when the market was falling, their price was lucrative, said a top official of a stock brokerage firm.
"So, some investors bought shares," he said.
"On the other hand, stocks of well performing companies were highly demanded so they rose," he said, adding it influenced the market index positively.
Alif Industries topped the gainers' list, rising 10 per cent, followed by Bangladesh Shipping Corporation, Hamid Fabrics, Dacca Dyeing, and Salvo Chemicals.
Beximco Ltd traded the most stocks on the day, worth Tk 71 crore, followed by Bangladesh Shipping Corporation, Asia Insurance, Sonali Paper, and One Bank.
Savar Refractories shed the most, dropping 5 per cent, followed by Asia Insurance, AMCL (Pran), Eastern Cables, and Provati Insurance.
Meanwhile, a group of investors protested in front of Bangladesh Bank yesterday, urging the top authority to mitigate its rift with the stock market regulator.
The two regulators in the financial sector have been embroiled in a tussle for the past few months in some areas, spooking the confidence of stock investors.
Recently, the BSEC ordered all listed companies, including banks and non-bank financial institutions, to deposit their undistributed dividend to the stock market stabilisation fund.
It also allowed banks and non-banks to declare dividends from the current year's profits despite having cumulative losses. However, the central bank ordered them not to follow the order.
The Chittagong Stock Exchange also rose yesterday. The CASPI, the main index of the port city bourse, soared 217 points, or 1.12 per cent, to 19,639.
Among the traded 301 stocks, 225 rose, 60 fell and 16 remained unchanged.