Stocks gain on SEC move to raise margin loan ratio

Dhaka stocks gained sharply yesterday, riding on the regulator's move to increase the margin loan ratio.
Market operators said the initiatives taken by the Securities and Exchange Commission have apparently soothed the confidence of retail investors, as reflected in price movement and increased turnover.
They said the market started bouncing back on Monday when it witnessed a slow rise on investors' expectations that positive decisions would be taken by the SEC to bring back stability and confidence into the market from a consecutive five-week slump.
After a meeting with merchant bankers on Tuesday, the SEC announced that it would actively consider an enhancement in margin loan ratio.
The SEC also said it would further consider relaxing the conditions for merchant banking wings of non-banking financial institutions (NBFIs) for giving loans to the investors. At present, the NBFIs are not allowed to provide loans more than five times of their paid-up capital.
The market operators said the investors were more active across the board to take a position on securities that pushed the benchmark index of the Dhaka Stock Exchange as high as 2,704 points in the mid-day.
However the DSE General Index finally rose 71.33 points, or 2.72 percent to 2,693.27 points. The All Share Price Index also increased 55.64 points, or 2.55 percent to 2,231.62 points.
Most of the securities traded up on the premier bourse. Of the 227 traded scrips, 181 registered gains, 40 incurred losses and six remained unchanged.
A total of 2,27,25,014 shares worth Tk 222.40 crore changed hands on the DSE. The market capitalisation increased to Tk 97,018.74 crore.
Beximco Pharma topped the turnover leaders with 11,28,650 traded shares worth Tk 17.94 crore. The day's other turnover leaders were Titas Gas, ICB 2nd NRB, Grameen Mutual Fund One: Scheme 2, Beximco, LankaBangla Finance, Uttara Bank, AIMS 1st Mutual Fund, ACI and Aftab Auto.
Chittagong stocks also marked a sharp rise yesterday. The CSE Selective Categories Index went up 143.09 points, or 2.73 percent to 5,378.87 points, while the CSE All Share Price Index gained 200.09 points, or 2.47 percent to 8,274.33 points.
A total of 66,50,580 shares worth Tk 51.36 crore changed hands on the port city bourse. Of the 129 traded issues, 113 advanced, 13 declined and three remained unchanged.