SEC's new chief cheers up stocks

Stocks gained for a second day as the government appointed a new chairman to the Securities and Exchange Commission (SEC) as part of a government plan to recast the commission.
The benchmark general index of Dhaka Stock Exchange gained 175 points, or 3.12 percent, to close at 5,788 points.
The selective categories index of Chittagong Stock Exchange advanced 291 points, or 2.88 percent, to close at 10,383 points.
The government has chosen Prof M Khairul Hossain as the head of the market regulator, replacing Ziaul Haque Khondker.
Akter H Sannamat, a market analyst, said: “Investors went for buying shares because of the latest move by the government.”
Sannamat, also a former managing director of Prime Finance and Investment, said: “The government should make SEC functional in a bid to restore confidence to the market.”
Azharul Islam, a retail investor, said: “The new chairman must not work under influence and should take investor-friendly policy to stabilise the capital market.”
Islam also said the SEC should take some steps to increase credit inflow to the market.
Turnover on the DSE surged to
Tk 563 crore, up Tk 113.30 crore from the previous day.
Of the total 250 issues traded on the DSE floor, 216 advanced, 32 declined and two remained unchanged.
It is the market's highest gain since the government published the stock market probe report.
Nearly all major sectors traded up: banks gained 0.98 percent, non-bank financial institutions 6.28 percent, telecoms 2.02 percent, pharmaceuticals 2.36 percent and fuel and power 2.38 percent.
Peoples Leasing and Financial Services topped the turnover leader, with 19.35 lakh shares worth Tk 23.37 crore traded.
Purabi General Insurance was the biggest gainer of the day, posting a 16.04 percent rise in its share prices, while Khulna Power Company was the worst loser, slumping by 9.05 percent.