Stocks up as regulatory decision boosts investors’ confidence

Dhaka stocks gained this week riding on the investors’ optimism lifted by a regulatory decision that again allowed share trading against bank cheque before encashment.

The DSEX, the key index of the Dhaka Stock Exchange (DSE), surged 32.67 points or 0.51 per cent to settle the week at 6,411 as the regulatory decision helped investors participate in the market with growing confidence.

Among other indices, the DS30, the blue-chip index, dropped 12.82 points to close at 2,253, and the DSES, the Shariah-based index, slightly fell 1.39 points to finish the week at 1,401. Meanwhile, the average turnover surged by 52.72 per cent to Tk 1,094 crore this week.

The miscellaneous sector topped the turnover chart with a contribution of 15.21 per cent to the total turnover.

The market performed five sessions this week. The market started on a negative note by giving up 0.69 per cent on Sunday and continued the downward trend in the following trading session with a loss of 0.42 per cent.

It, however, turned positive on Tuesday by adding 0.72 per cent and remained positive on Wednesday with a gain of 0.56 per cent.

The market ended higher with a gain of 0.35 per cent on Thursday, the last trading session of the week.

Financial sectors posted mixed performance this week with the life insurance sector booking the highest gain of 5.22 per cent, followed by general insurance (4.10 per cent), and NBFI (0.02 per cent), according to Brac EPL’s weekly market commentary.

The bank sector faced the highest loss of 0.13 per cent, followed by the mutual fund, it added. UCB Stock Brokerage, another stockbroker, said the IT, travel & leisure, and jute sectors closed positively this week among the non-financial sectors.

The prime index of the premier bourse closed higher this week as the regulatory solution to the cheque encashment issue enticed positively the investors in the market, said EBL Securities, a stockbroker, in its weekly market review.

But the market movements were reigned mainly by some sector-specific stocks throughout the week, it added. The optimism, however, might change next week as the International Monetary Fund (IMF) would hold a meeting with the Bangladesh Securities and Exchange Commission (BSEC) on November 7 to discuss recent capital market issues, including the floor price restriction, EBL Securities commented.

Out of the 398 issues traded, 121 advanced, 46 declined, and 222 remained unchanged on the trading floor of the DSE this week.

Navana Pharma was the week’s topper with a price gain of 114 per cent, while Bangladesh Monospool Paper Manufacturing Co Limited suffered the most by giving up 13 per cent.

On Tuesday last, the stock market regulator again allowed investors to buy shares and other listed securities instantly against bank cheques, pay orders, or demand drafts.

Earlier on October 11, the regulator prohibited this facility in a bid to stop malpractices by a section of unscrupulous investors and stockbrokers.