Stocks open higher despite removal of lower circuit

Stocks opened higher on Thursday as buoyant investors are putting fresh bets on lucrative shares in anticipation of short-term gain after the removal of the lower circuit breaker.

The Bangladesh Securities and Exchange Commission (BSEC) brought back the lower limit of the circuit breaker mechanism to 10 per cent from 3 per cent for all publicly traded companies, along with some decisions on Wednesday, which boosted investors’ confidence.

Investors are optimistic about the return of good governance in the market as the massive reforms are underway in the financial sectors, including the capital market.

Meanwhile, the United Kingdom has expressed interest in helping the capital market reform alongside the banking and revenue sectors.

Following the news, the prime index of the Dhaka Stock Exchange (DSE), went up by 19 points or 0.33 per cent to 5,776 within the first hour of trading at 11:00 am, when the report was filed.

The blue-chip DS30 index, a group of 30 prominent companies, also gained 2 points to 2,119 and the DSES index, which represents Shariah-based companies, rose 3 points to 1,240.

Turnover, another important indicator of the market, stood at Tk 2.52 billion.

Of the issues traded till then, 218 advanced, 111 declined, and 57 issues remained unchanged on the DSE trading floor.

MJL Bangladesh was the most traded stock till then with shares worth Tk 411 million changing hands.

The Chittagong Stock Exchange (CSE) also saw a positive trend till then with its All Shares Price Index (CASPI)—gaining 4 points to stand at 16,398 while the Selective Categories Index – CSCX gained 2 points to reach 9,882.

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