Stocks rebound on BSEC move

Stocks rebounded Tuesday, snapping a two-day tumble, riding on Bangladesh Securities and Exchange Commission's latest market supportive measures.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 27.38 points or 0.52 per cent to settle at 5,202, after hitting a 28-month low in the previous day.
Turnover, another important indicator of the market, also crossed Tk 4.0 billion after 13 sessions and amounted to Tk 4.15 billion, which was 39 per cent higher than the previous day's Tk 2.98 billion.
Market analysts said some investors showed their buying appetite after the regulator came up with a set of decisions to stop the fall in share prices on Monday.
The regulator took decisions including increasing the general investors' quota for IPO shares and counting the lock-in period for sponsors-placement shareholders from the trading day of a company instead of prospectus issue date.
In order to declare bonus shares, a company will have to explain how it will spend the money. A company will not need to take approval from the regulator to raise capital through pre-IPO shares.
Through IPO, a company must raise a minimum Tk 500 million in fixed price method and Tk 1.0 billion in case of book building method.
"The regulator's move has helped the market go into the positive territory," said an analyst.
However, he said, it is early to say whether this positive trend is sustainable or not.
The market opened on positive note and the upward trend sustained until end of the session with some volatility.
Two other indices also ended higher. The DS30 index, comprising blue chips, advanced 10.92 points to finish at 1,846 and the DSE Shariah Index rose 6.32 points to close at 1,205.
According to International Leasing Securities, the investors showed their buying spree, particularly on power, food, engineering, textile, pharma and bank stocks.
The stockbroker noted that the investors' participation rose as they took fresh position on lucrative price levels in different issues.
EBL Securities said investors showed optimism as the regulator came up with a set of decisions to prop up stock prices.
The port city bourse, Chittagong Stock Exchange, also ended higher with its CSE All Share Price Index - CASPI -advancing 43 points to settle at 15,912 and the Selective Categories Index - CSCX -gaining 26 points to finish at 9,629.

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