Regulatory move for ensuring mandatory shareholding rules

Stocks rebounded on Monday with key index hitting one-month high as optimistic investors went on buying binge at the lowest possible prices riding on the regulatory move for ensuring mandatory shareholding rules.Stocks rebounded on Monday with key index hitting one-month high as optimistic investors went on buying binge at the lowest possible prices riding on the regulatory move for ensuring mandatory shareholding rules.DSEX, the key index of the Dhaka Stock Exchange, went up by 13.13 points or 0.32 per cent to settle at more than one month high at 3,994, since June 1.The stock market regulator has asked 61 directors of 22 listed companies to ensure a minimum 2.0 per cent shares in their own companies within 45 days to continue their directorship.According to the rules, if any director fails to comply with the 2.0 per cent shareholding rules, his/her position would be automatically vacated.Buy pressure on general insurance, banking and pharma stocks propped the index up, commented UCB Capital, in its regular market analysis.The stock market regulator's ultimatum to 61 directors of 22 listed firms to ensure holding of minimum 2.0 per cent shares led the buy pressure, particularly on general insurance sector, as most of the directors that fell under radar from this sector, said the UCB analysis.According to media reports, of the 22 companies, 14 are from the insurance sector, which have 49 non-compliant directors.Two other indices also edged higher. The DS30 index, comprising blue chips, rose 6.60 points to finish at 1,342 and the DSE Shariah Index advanced 0.91 points to close at 921.Turnover, another important indicator of the market, stood at Tk 1.50 billion on the country's prime bourse, climbing by 104 per cent over the previous day's turnover of Tk 734 million.According to International Leasing Securities, many investors went for buying shares riding on the regulatory move to ensure holding of a minimum 2.0 per cent share in their own companies within 45 days.The stockbroker noted that some optimistic investors showed their buying appetite based on latest quarterly earnings declarations and to gain some dividend yield. Market analysts, however, said the most of investors remained worried about the adverse impact of worsening pandemic situation with looming uncertainty about economic growth and the regulator-enforced floor price system.Of the issues traded, 216 remained unchanged while 57 issues advanced and 23 declined on the DSE floor.Among the major sectors, insurance posted the highest gain of 1.30 per cent, followed by banking with 0.70 per cent, pharma 0.30 per cent and ceramic 0.10 per cent.A total number of 25,022 trades were executed in the day's trading session with a trading volume of 47.69 million shares and mutual fund units.The market-cap on the premier bourse also rose to Tk 3,120 billion on Monday, from Tk 3,115 billion in the previous session.Beximco Pharma topped the turnover chart with shares worth Tk 104 million changing hands, followed by Square Pharma, Indo-Bangla Pharma, Bangladesh Submarine Cable and Wata Chemicals.Pubali Bank was the day's best performer, posting a gain of 10 per cent while Beximco Synthetics was the worst loser, losing 6.25 per cent.The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI)-advancing 32 points to close at 11,338 and the Selective Categories Index - CSCX -gaining 21 points to finish at 6,866.Of the issues traded, 36 gained, 16 declined and 67 remained unchanged on the CSE. The port city bourse traded 2.35 million shares and mutual fund units with turnover value of Tk 891 million.

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