Loading...
The Financial Express

Stocks open higher riding on regulatory moves

| Updated: March 18, 2021 15:50:56


Investors react while monitoring stock price movements on computer screens at a brokerage house in the capital city — FE/Files Investors react while monitoring stock price movements on computer screens at a brokerage house in the capital city — FE/Files

Stocks soared at the opening on Tuesday thanks to the regulatory measures taken to boost the capital market.

Within the first hour of trading, the DSEX advanced more than 28 points while the CSE All Share Price Index (CASPI) of port city’s bourse rose 78 points at 11:00 am when the report was filed.

DSEX, the benchmark index of the DSE, went up by 28.42 points or 0.51 per cent to stand at 5,561 points till then.

Market analysts said Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission’s market supportive measures encouraged investors to the market.

The central bank and the securities regulator took a set of decisions in a meeting on Monday, including allowing the listed banks to declare up to 35 per cent dividend, instead of the existing limit of 30 per cent.

From now on, the listed banks will be able to provide up to 35 per cent dividend while the listed NBFIs over 15 per cent if they have the ability.

Both the regulators will take necessary steps to encourage banks to form a special fund of Tk 2.0 billion in order to invest in the stock market.

The other decisions taken in the meeting included ensuring investors’ participation in trading treasury bills and bonds, pursuing the National Board of Revenue to revoke tax imposed on listed companies’ stock dividend payouts, and listing perpetual bonds with the stock exchanges.

Meanwhile, two other DSE indices also saw a positive trend till filing of this report with the DS30 index, comprising blue chips, gained 9.39 to reach 2,168 points and the Shariah Index (DSES) advanced 5.58 points to stand 1,268 points till then.

Turnover, another important indicator of the market, stood at Tk 2.02 billion within the first hour of trading when the report was filed at 11:00 am.

Of the issues traded till then, 185 advanced, 39 declined, and 95 remained unchanged on the DSE.

Beximco was the most traded stock till then with shares worth Tk 211 million changing hands, followed by Robi, GBB Power, BSSCL and LankaBangla Finance.

The Chittagong Stock Exchange (CSE) also saw a positive note with the CASPI gaining 78 points to stand at 16,133, also at 11:00 am.

Of the issues traded till then, 59 gained, 22 declined, and 29 remained unchanged with Tk 88 million in turnover.

[email protected]

Share if you like