Stocks extended the gaining streak Wednesday with turnover on the major bourse crossing Tk 6.0 billion-mark after seven weeks, as some investors showed their buying appetite on sector-wise issues.
Brokers said the market nudged higher amid increased turnover as investors took position on sector-specific stocks following the securities regulator's fresh move to take legal action against the directors who have failed to hold at least 2.0 per cent stakes individually in their own companies.
The Bangladesh Securities and Exchange Commission (BSEC) Tuesday decided to take legal action against the listed companies' directors who do not hold at least 2.0 per cent shares of their own companies.
The BSEC also decided to issue an order to the companies to ensure that their sponsor-directors hold minimum 30 per cent of total shares as per the rules.
"The fresh move would stop sale of shares by the sponsors and directors within their companies," said an analyst at a leading brokerage firm.
According to latest statistics from the DSE, some 30 listed companies' sponsors- directors are holding less than 30 per cent stakes collectively while 219 individual directors of 78 listed companies failed to hold at least 2.0 per cent stakes individually in their own companies.
The market started on a positive note and the key index of the prime bourse gained nearly 46 points within first hour of trading, but late hour sale pressure wiped out most of the early gains, finally DSE key index ended nearly 14 points higher while CSE All Share Price Index - CASPI- advanced 58 points at closing.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 13.94 points or 0.22 per cent to settle at 6,102 over the previous day.
"The securities regulator's fresh move, to penalize directors having less than required 2.0 per cent shareholdings, helped investors to regain confidence," commented EBL Securities, a stockbroker, in its regular market analysis.
The two other indices also nudged higher. The DS30 index and the DSE Shariah Index (DSES) finish at 2,250 and 1,410 points, after gaining 4.50 points and 3.88 points respectively.
Trading activities also increased and the total turnover on the DSE amounted to Tk 6.21 billion, which was 23 per cent higher than the previous day's Tk 5.04 billion.
According to AT Capital Partners, an asset management company, the market ended marginally higher and the key index crossing the 6,100 points-mark amidst higher participation from investors.
The asset management company noted that the core index of the DSE initiated with buying momentum and gained 50 points within 30 minutes which went on sideways in the following hour.
"Then the market reversed the gear as investors profit booking sentiment came into play in the latter half of the session but managed to end meagrely green," said the asset management company.
Among the major sectors, engineering, non-bank financial institutions and pharmaceuticals gained 0.30 per cent, 0.10 per cent and 0.10 per cent respectively.
On the other hand, food & allied, telecommunication, power and banking sectors fell 0.80 per cent, 0.40 per cent, 0.30 per cent and 0.30 per cent respectively.
Out of 335 issues traded, 175 closed higher, 125 ended lower and 35 issues remained unchanged on the DSE trading floor.
LankaBangla Finance topped the day's turnover chart with 7.39 million shares worth Tk 297 million changing hands, followed by Unique Hotel & Resorts, Brac Bank, Beximco Pharmaceuticals and Fu-Wang Food.
Aman Feed was the day's best performer, posting a gain of 10 per cent while Padma Life Insurance was the day's worst loser, plunging by 4.39 per cent.
CSE also ended higher with CSE All Share Price Index - CASPI - advancing 58 points to settle at 18,879 and Selective Categories Index - CSCX -gaining 31 points to finish at 11,389.
Gainers beat losers as 142 issues ended higher, 75 lower and 24 remained unchanged on the CSE.
The port city bourse traded 11.67 million shares and mutual fund units worth more than Tk 263 million in turnover.
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