Dhaka stocks rebound on latest SEC move

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FE Report
Dhaka stocks rebounded Tuesday as the benchmark index rose sharply more than two per cent to post the biggest single-day gain in two months, spurred by the securities regulator's latest move to boost the buying capacity of investors.
The benchmark index of the Dhaka Stock Exchange (DSE) saw the third highest single-day rise on the day since January 14 this year.
The DSE General Index (DGEN) closed at 5,460 with a gain of 122.61 points or 2.19 per cent on the day.
The market gained as the Securities and Exchange Commission (SEC) raised the margin loan ratio from 1:1 to 1:1.5 in a move to boost the investors' purchasing capacity. The ratio takes effect tomorrow (Thursday).
The market went up the way it plunged the previous day, as it recovered almost the same points it lost in the previous session marked by investors' demonstration demanding a halt to the downslide experienced by the market over the last three weeks.
There were no negative performing sectors in the market on the day with financials witnessing healthy activities. Energy, pharmaceuticals and telecommunications sectors also remained in the limelight during the trading.
Share prices of more than 94 per cent gained as 241 issues were traded. Of them, 227 ended positive, 13 lost and one remained unchanged.
"The securities regulator's move has perked the market up,' said Nasir Uddin Chowdhury, Chief Executive Officer at LankaBangla Securities.
"Actually, it's a psychological reaction that led to the buying spree," he added.
Two other market barometers of the DSE also gained sharply, with the broader All Shares Price Index (DSI) surging by 98.77 points or 2.25 per cent to 4,476.59 and the DSE-20 Index (DS20) gaining 77.94 points or 2.67 per cent to 2,989.23.
The market will remain closed today (Wednesday) due to a public holiday marking the birth anniversary of Bangabandhu Sheikh Mujibur Rahman.
After three weeks of dismal trading, the market once again bounced back with a healthy transaction in shares worth Tk 7.12 billion, which was more than 14 per cent higher than the previous session's Tk 6.27 billion.
Grameenphone, the sole listed company in the telecommunication sector, edged 1.52 per cent higher to Tk 327.9.
The banking sector rose 2.21 per cent with First Security Bank gaining the highest 4.49 per cent.
The energy sector went up 2.40 per cent, non-banking financial institutions (NBFIs) 2.31 per cent, pharmaceuticals 2.12 per cent, mutual funds 2.09 per cent, cement 0.39 per cent and tannery 4.05 per cent.
Both general and life insurance companies gained 4.31 per cent and 2.64 per cent respectively.
Lanka Bangla Finance, a leading leasing company, topped the turnover list with shares worth Tk 748.86 million changing hands, ousting Bextex, a textile arm of the industrial conglomerate Beximco Group.