Due to an additional public holiday, last week was shortened to four trading sessions instead of the usual five
Stocks closed last week in positive territory after two consecutive weeks of losses, with investor sentiment rebounding due to the new commission’s strict measures against market misconduct.
Due to an additional public holiday, last week was shortened to four trading sessions instead of the usual five.
The benchmark index DSEX of the Dhaka Stock Exchange (DSE) edged up by 104 points to reach the 5,800 mark after two weeks, while the blue-chip index DS30 gained 34 points to close at 2,124.
The Chittagong Stock Exchange (CSE) also ended the week in positive territory, with the all-share price index CASPI rising by 0.86% to reach 16,520 points and the general index CSCX increasing by 0.90% to 9,954 points.
EBL Securities said in its weekly market review, the capital market of the country showed signs of recovery, with the benchmark index of the Dhaka bourse crossing the 5,800 mark again after two weeks as buyers continued their dominance across the trading floor owing to a slight rebound in investor sentiment, while some recent reformation attempts taken by the stock market regulator also worked as a catalyst to restore some investor confidence.
Buyers remained on the dominant side as opportunistic investors sought to take positions in particular scrips, which they deemed lucrative at the prevailing price levels, it added.
Stockbrokers said that the expectation for an interference-free and fair trading environment energised an increasing number of investors following the political and regulatory regime change earlier this month.
Under the previous chairman Shibli Rubayat-Ul Islam, the Bangladesh Securities and Exchange Commission (BSEC) was known for its attempts to control prices through floor limits or restrictions on daily declines whenever it feared a market correction.
According to market participants, this unprecedented frequency of market interference undermined the core nature of the stock market, and investors hope such a regulatory regime does not return to Bangladesh.
The new commission, led by Chairman Khondoker Rashed Maqsood, has withdrawn the floor price restrictions except for Islami Bank and Beximco Limited, and lifted the lower circuit breaker limit of 3% imposed by the previous commission.
Additionally, the new commission has warned of punitive actions against those who fail to pay dividends on time.
Investor participation in the market also increased by 27% to Tk792 crore compared to the previous week at the DSE. Among the traded stocks, 293 advanced, 86 declined, and 18 remained unchanged.
On the DSE, the banking sector had the highest turnover, contributing 24.5% of the total amount. It was followed by the pharmaceutical sector, which contributed 15.7%, and the food sector, which contributed 12.7%.
BAT Bangladesh topped the DSE turnover list, followed by Olympic Industries and Grameenphone. Investors received the highest returns from the insurance, engineering, and textile sectors.
Specifically, the insurance sector provided a return of 10.25%, the engineering sector delivered a return of 9.21%, and the textile sector offered a return of 5.74%.
Among the top ten gainers, six were insurance firms, indicating strong buying interest in these stocks. However, Khan Brothers PP Woven Bag, a loss-making company, topped the gainers’ list with its share price jumping by 29% to reach Tk104.2, followed by National Life Insurance and Pragati Insurance.
Sonali Paper performed the worst last week, with its share price dropping by around 14%, followed by Shahjibazar Power and Khulna Power.
Source: The Business Standard