Stocks edge higher as regulator relaxes margin loans directive

Stocks finished marginally higher for the two consecutive sessions on Thursday as the stock market regulator relaxed its directive on margin loans for more four months.

The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday relaxed its directive on margin loans, allowing the stock lenders to adjust interest rate at 12 per cent until June 30, 2021. It was supposed to be adjusted within February 1.

The market sharply increased at open and the key index of the Dhaka Stock Exchange (DSE) soared 72 points within the first 30 minutes riding on news of the securities regulator’s relaxation on margin loans directive and the rollout of Covid-19 vaccination.

However, most of the initial gains wiped out the rest of the session as cautious investors opted for booking profit on sector-specific stocks.

Finally, DSEX, the prime index of the DSE, went up by 9.60 points or 0.16 per cent to settle at 5,724.

Two other indices also edged higher. The DSE 30 Index comprising blue chips rose 12.60 points to finish at 2,191 and the DSE Shariah Index (DSES) saw a fractional gain of 0.51 point to close at 1,280.

Top positive index contributors of the market were ROBI, Beximco, Grameenphone, British American Tobacco and United Power, according to data from amarstock.com, a stock market data analyst.

Turnover, a crucial indicator of the market, however, remained below Tk 10 billion-mark to Tk 9.41 billion on the country’s premier bourse, rising by 4.0 per cent over the previous day’s mark of Tk 9.05 billion.

Gainers took a slight lead over the losers, as out of 359 issues traded, 134 advanced, 131 declined and 94 remained unchanged on the DSE trading floor.

Beximco, the flagship company of Beximco Group that rebounded strongly with 8.14 per cent rise—topped the turnover chart with 18.43 million shares worth Tk 1.54 billion changing hands, closely followed by ROBI, Beximco Pharma, BATBC and LankaBangla Finance.

A total number of 152,545 trades were executed in the day’s trading session with a trading volume of 233.85 million shares and mutual fund units.

Market-cap of the DSE rose to Tk 4,840 billion on Thursday, from Tk 4,822 billion in the previous day.

Miracle Industries was the day’s best performer, gaining 9.85 per cent while newly listed Energypac Power Generation continued to become the worst loser for the third straight session, sliding 6.15 per cent to close at Tk 71.70 each.

The Chittagong Stock Exchange (CSE) also edged higher with the CSE All Share Price Index – CASPI –gaining by 86 points to settle at 16,675 and the Selective Categories Index – CSCX rising 52 points to close at 10,065.

Of the issues traded, 107 advanced, 87 declined and 60 remained unchanged on the CSE.

The port city’s bourse traded 11.25 million shares and mutual fund units with a turnover value of Tk 434 million.

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