Stocks rebound on BSEC move
Stocks rebounded yesterday after the securities regulator called upon the brokerage houses and merchant banks to give support to the falling market.
The benchmark index of Dhaka Stock Exchange, DSEX, gained more than 54 points or 1.4% to close at 4,014, recovering from its previous session’s 18-month low.
The Shariah Index DSES rallied 14 points or 1.5% to 988. The comprising blue chips DS30 was up 16 points or 1% to 1,522. Chittagong Stock Exchange (CSE) Selective Categories Index, CSCX, ended at 7,510, rising 77 points.
Being worried over the continuous slide of stock markets, Bangladesh Securities and Exchange Commission (BSEC) on Monday convened an urgent meeting with stakeholders – brokerages and merchant banks – asking them to give support to the market for few days to bring back investors’ confidence.
“The regulator’s move has helped the market go into the positive territory,” said an analyst.
He said: “But, it is an artificial move. So, the rally would not be sustainable in the long run. Rather, it will help burn fingers of some retailers afresh.”
Despite BSEC’s move, some investors preferred to stay on the sidelines, as turnover failed to increase. The DSE turnover stood at Tk327 crore, slightly down (little more than 1%) over the previous session.
IDLC Investments said the natural buy pressure was reinforced with BSEC’s meeting with stakeholders which tried to reinstate investors’ confidence.
Lanka Bangla Securities said investors might have responded positively to the news that institutional investors will play active role in reviving the investors’ confidence for bringing back normalcy in the capital market.
Mostly bank, power, textile and engineering stocks were in buying spree, it said. All the major sectors closed higher except food & allied that declined 13%.
Telecommunication shot up highest 2.5%, followed by pharmaceuticals 1.4%, cement 1.3% and power 0.4%. In the financial sector, banks and non-banking financial institutions closed marginally higher.
United Power Generation and Distribution Company Limited continued to top the turnover list with shares worth Tk35 crore.