Stocks stop falling, finally
Stocks stopped incurring losses yesterday as many investors took a break from making sales to see the impact of the stock market regulator's policy intervention on enabling higher credit to be availed for the purchase of stocks.
The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), rose 118 points, or 1.93 per cent, to 6,261.
On Sunday, the Bangladesh Securities and Exchange Commission (BSEC) issued a directive allowing stockbrokers to provide a maximum of 100 per cent of an individual investor's deposit as credit.
That means an investor can get Tk 100 as credit to invest in stocks against an investment of Tk 100. Earlier, stockbrokers were allowed to lend 80 per cent of their deposits.
At the DSE, 343 stocks advanced, 19 declined and 14 remained the same.
Turnover of the premier bourse dropped 3 per cent to Tk 658 crore.
The stock market bounced back following the government intervention after a sharp fall over eight days, said International Leasing Securities in its daily market review.
The finance minister held a meeting with the central bank governor, finance secretary, and financial institutions division secretary on Sunday to devise mechanisms for preventing further falls of the stock indices, it said.
The minister instructed regulators to help stabilise the stock market, said the review.
He also advised to keep the investments of banks made through the Investment Corporation of Bangladesh out of the purview of their capital market exposure limit, it added.
This initiative gave a little confidence to investors and got them to wait and see what impact it had on the market, it added.
In the stock market, the DS30, the blue-chip index, and the DSES, the Shariah-based index, gained 32.59 points and 15.26 points respectively.
Among the major sectors, textile surged 4.8 per cent while jute 4.5 per cent.
Based on the turnover, investors' activities were mostly concentrated on miscellaneous (15.6 per cent), pharmaceuticals (13.3 per cent) and banks (9.4 per cent).
Paramount Textile topped the gainers' list, rising 9.94 per cent. S Alam Cold Rolled Steels, MIDAS Financing, National Feed Mills and VFS Thread Dyeing are in the list.
Bangas shed the most, dropping 4.78 per cent. The Rangpur Dairy & Food Products, Dhaka Insurance, International Leasing and Financial Services and Bangladesh National Insurance Company were in the list of those suffering losses.
Beximco became the stock to be traded the most, with shares worth Tk 48 crore changing hands, followed by Shinepukur Ceramics, JMI Hospital Requisite Manufacturing, Bangladesh Shipping Corporation and IPDC Finance.
Chittagong Stock Exchange (CSE) also rose. The CASPI, the price index of the port city bourse edged up 322 points, or 1.78 per cent, to 18,400.
Among the 274 stocks to undergo trade, 207 advanced, 51 fell and 16 remained the same.