Stocks open higher as investors cheer floor price removal for Beximco, Islami Bank

Stocks opened higher on Tuesday as investors reacted positively to the removal of floor prices on shares of Beximco and Islami Bank, despite both stocks hitting the lower circuit breaker limit at the opening session.

The newly reconstituted Bangladesh Securities and Exchange Commission (BSEC) on Monday withdrew the floor price restrictions imposed on the two companies, marking the end of a controversial market intervention that had remained in place for nearly four years.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) gained 33 points, or 0.61 per cent, to reach 5,515 by 11:00 am, reflecting renewed investor confidence and growing expectations of regulatory reforms.

Although shares of Beximco and Islami Bank fell to their lower circuit breaker limits after trading resumed without the floor price protection, the broader market remained resilient, indicating that investors viewed the move as a positive step toward restoring normal market mechanisms.

Market sentiment received an additional boost following the appointment of renowned chartered accountant Masud Khan as chairman of the BSEC last week. Three new commissioners — Md Nafeez-Al-Tarik, Nahid Mahtab and Tanvir Habib Rahman — have also been appointed for a four-year term, signalling a major overhaul of the market regulator.

Analysts said investors are optimistic that the new commission will take steps to improve market transparency, strengthen corporate governance and restore confidence in the country's capital market. Expectations of supportive policy measures and repeated government commitments to revitalise the market also encouraged investors to increase their exposure to equities.

The positive momentum was evident across market segments. The blue-chip DS30 index advanced 6 points to 2,075, while the Shariah-based DSES index rose 4 points to 1,111.

Turnover on the premier bourse reached Tk 3.75 billion within the first hour of trading, indicating strong investor participation. Market breadth remained firmly positive, with 272 issues advancing, 48 declining and 66 remaining unchanged.

Among individual stocks, CVO Petrochemical Refinery Limited emerged as the most actively traded issue, with shares worth Tk 130 million changing hands by 11:00 am.
In contrast, the Chittagong Stock Exchange (CSE) witnessed a mild downturn in early trading. The CASPI index fell 78 points to 15,236, while the CSCX index lost 50 points to 9,359.  

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