The stock market bounced back on gaining streak Thursday after the securities regulator reduced the lower limit circuit breaker to stop the free fall of the stock index.
The Bangladesh Securities and Exchange Commission (BSEC) reduced the lower limit of circuit breaker to 2.0 per cent from 5.0 per cent effective from Thursday.
The regulator's latest move has not allowed an issue to drop more than 2.0 per cent on a single day which helped the market stop from further falling.
"Extended credit facilities for margin clients also helped reduce sell pressure in the market," said a leading broker.
The market opened lower and the key index fell around 15 points within the first hour of trading, but late hours buying pressure led by institutional investors took the market index higher, ultimately ending over 50 points gain.
DSEX, the key index of Dhaka Stock Exchange (DSE), went up by 50.33 points or 0.81 per cent to settle at 6,237, after losing 74 points in the past two days.
Earlier, the market index lost 511 points in the past 11 trading days which prompted the securities regulator to intervene in the market further to bring back investors' confidence.
Market insiders said the regulatory efforts finally stopped the losing streak, but most investors remained cautious amid confidence crisis as well as the persisting economic worries.
Earlier, the securities regulator raised the margin-loan ratio to 1:1 while the government is set to extend the tenure as well as amount of the capital-market refinancing fund to help revamp the country's ailing capital market.
"The market bounced back as the investors showed their interest on the lucrative stocks during the last one hour of the session," said International Leasing Securities.
The confidence of general investors, however, is yet to restore as uncertainties persist due to soaring inflation and local currency devaluation.
Two other indices also ended higher. The DS30 index, comprising blue chips, rose 19.40 points to finish at 2,307 and the DSE Shariah Index (DSES) gained 10.24 points to close at 1,373.
Turnover, a crucial indicator of the market, however, remained low and total turnover stood at Tk 5.39 billion, which was 5.06 per cent higher than the previous day's tally of Tk 5.13 billion.
All the sectors posted gain with financial institutions gaining 1.70 per cent, followed by power 0.60 per cent, pharma 0.60 per cent, telecom 0.50 per cent and banking 0.30 per cent.
Out of 374 issues traded, 273 advanced, 61 declined, and 40 issues remained unchanged.
Beximco was the most-traded stock with shares worth Tk 605 million changing hands, closely followed by IPDC Finance, Fortune Shoes, Bangladesh Shipping Corporation and Bangladesh Finance.
Apex Tannery was the day's top gainer, gaining 6.92 per cent while Pioneer Insurance was the worst loser, losing 10.87 per cent following its price adjustment after record date.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index (CASPI) gaining 118 points to settle at 18,280 and its Selective Categories Index (CSCX) rising 70 points to close at 10,966.
Of the issues traded, 132 advanced, 88 declined and 35 issues remained unchanged on the CSE trading floor.
The port-city bourse traded 5.20 million shares and mutual fund units with turnover value of Tk 136 million.
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