Stocks rebounded strongly Wednesday, snapping a prolonged bearish trend, amid investors' optimism after the central bank and the securities regulator agreed to resolve some policy matters related to the stock market.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), soared 143.74 points or 2.14 per cent to settle at 6,847, after losing over 92 points in the previous day.
A high-level meeting between Bangladesh Bank and Bangladesh Securities and Exchange Commission was held Tuesday where they agreed to resolve any complex issues through discussion for ensuring sustainable development of the country's capital market.
"The investors seemed to have regained their confidence as the meeting gave a positive vibe among investors," said a merchant banker.
Earlier, the central bank and the stock market regulator ordered listed banks and non-bank financial institutions in different directions which rattled investors' confidence.
Market analysts said the regulators agreed upon some prudent measures to boost up the stocks which motivated the investors to make new investments in the sector specific lucrative stocks.
Besides, private sector credit growth accelerated to 9.44 per cent in October, the highest in 13 months as the economy is running in full swing, which also encouraged the stock investors, he said.
The central bank also decided not to mop up any money from the market as a part of its efforts to ease the ongoing liquidity crunch in the banking sector.
Stocks opened sharply higher from the beginning and the upsurge in the equity indices was led by the giant Beximco and Beximco Pharma stocks, he said.
Ten large-cap stocks such as Beximco, Grameenphone, Beximco Pharma, Square Pharma, Walton, Robi, BATBC, United Power, Power Grid and Delta Life Insurance, jointly contributed over 86 points gain of DSEX, according to amarstock.com.
Two other indices also ended sharply higher. The DSE 30 Index, comprising blue chips, jumped 73.56 points to finish at 2,589 and the DSE Shariah Index (DSES) soared 32.21 points to close at 1437.
Turnover, a crucial indicator of the market, stood at Tk 11.02 billion, which was nearly 4.0 per cent lower than the previous day's tally of Tk 11.46 billion.
Gainers took a strong lead over the losers, as out of 373 issues traded, 293 advanced, 45 declined and 35 issues remained unchanged on the DSE trading floor.
Beximco, which surged 9.80 per cent, was the most traded stock with shares worth Tk 1.22 billion changing hands, closely followed by ONE Bank (Tk 1.13 billion), First Security Islami Bank (Tk 772 million), Delta Life Insurance (Tk 464 million) and Acme Pesticides (Tk 319 million).
Index Agro Industries was the day's highest gainer, gaining 9.99 per cent while Tung Hai Knitting & Dyeing was the day's worst loser, losing 11.26 per cent following its no dividend declaration news.
The Chittagong Stock Exchange (CSE) also rose sharply higher with the CSE All Share Price Index - CASPI -soaring 383 points to settle at 19,998 and the Selective Categories Index - CSCX--rising 233 points to close at 12,023.
Of the issues traded, 198 advanced, 46 declined and 25 remained unchanged on the CSE.
The port-city bourse traded 17.70 million shares and mutual fund units with a turnover value of Tk 543 million.
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