DSEX, the key index of the Dhaka Stock Exchange (DSE), settled in green territory on Sunday, breaking a three-day losing streak as opportunistic investors took positions in certain scripts, particularly large-cap ones, which seemed lucrative following the substantial corrections.
Market insiders said the delay in the reappointment of the Bangladesh Securities and Exchange Commission's (BSEC) chairman had created uncertainty among investors and that led to the fall in the stock market.
That scenario changed on Sunday after the finance ministry issued a circular confirming Shibli Rubayat-Ul Islam's reappointment as the BSEC chairman for four more years.
DSEX gained 97.36 points or 1.76 per cent and closed at 5,615.84 at the end of trading. The blue-chip index, DS30, and the Shariah-based index, DSES, closed at 1,996.14 and 1,234.16 points, respectively. All the large-cap sectors posted positive performances on Sunday.
Market turnover also increased by 20 per cent to Tk 613 crore, from the previous session’s Tk 510 crore. On the sectoral front, pharma issues exerted the highest turnover, followed by textile and food stocks.
Before, the key index of the capital bourse extended its free fall, hitting its lowest point in three years, as investor sentiment failed to rebound despite several regulatory initiatives to improve investor confidence and clutch down the prolonged pessimism pervading the trading floor.
Between April 21 and April 25, the index rose only one day in five days of trading as investors were more focused on selling shares to protect their investments. As a result, the regulatory body initiative did not work as intended in the capital market.
BSEC on Wednesday issued an order recalibrating the circuit breaker, saying that the stocks of listed companies would not be allowed to fall more than 3 per cent based on the previous day's closing price. Previously, it was 10 per cent.
The market experienced dominance of the buyers since the beginning of the session, where the confirmation news of the BSEC chairman’s reappointment worked as a catalyst, and such dominance of the buyers persisted throughout the session, allowing the bull to regain control after three consecutive periods of losses, EBL Securities said in its daily market review.
However, it said, the news of the proposal to impose capital gain tax from the next fiscal year may pose concerns about sustaining this positive momentum in the forthcoming sessions.
Out of the 396 issues traded, 298 advanced, 52 declined and 46 remained unchanged at the Dhaka bourse on Sunday.
Food & Allied booked the highest gain of 4 per cent. Block trades contributed 7.3 per cent of the overall market turnover. Malek Spinning Mills was the most traded share with a turnover of Tk 35 crore.
Meanwhile, the Chittagong Stock Exchange (CSE) also settled on green terrain on Sunday.
The selected indices, CSCX, and All Share Price Index, CASPI, increased by 114.5 and 183.8 points, respectively.
Of the issues traded, 71 declined, 113 advanced and 22 issues remained unchanged on the CSE.
The port city bourse traded 38 lakh shares and mutual fund units with a turnover value of Tk 15.18 crore.
