Stocks rebound amid optimism over new BSEC chairman

Stocks ended higher on Wednesday, after two days of correction, as buoyant investors renewed their interest in lucrative blue-chip shares.

The appointment of Dr M Masrur Reaz as the new chairman of the Bangladesh Securities and Exchange Commission (BSEC) on Tuesday boosted the investor’s confidence. This optimism contributed to the market's positive performance.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), increased by 84.81 points to settle at 5,952.77 on the day.

This uptick follows a notable gain of nearly 800 points, or 14.3 per cent, between August 6 and August 11—an unprecedented increase in the past decade.

Market experts attribute the rally to renewed optimism for better governance following Sheikh Hasina’s resignation and the introduction of new leadership at BSEC.

The market rally was largely supported by fundamentally-strong stocks that had become cheap after sharp corrections in recent times

The blue-chip index DS30, a group of 30 prominent companies, saw a 63-point increase to 2197, while the DSES Index, which represents Shariah-based companies, saw a 14.98-point increase to 1,270 till the end.

Turnover, a crucial indicator of the market, stood at Tk 12.44 billion, up 22.6 per cent from the previous trading day.

The majority of the stocks saw a price decrease, as out of the 397 issues traded, 116 closed higher, 239 ended lower, and 42 remained unchanged on the DSE trading floor.

Grameenphone Ltd was the most-traded stock with shares worth Tk 1,591.61 million changing hands, followed by BRAC Bank PLC, United Commercial Bank PLC, Beximco Pharmaceuticals Ltd and Jamuna Bank PLC.

The Chittagong Stock Exchange (CSE) also ended higher on the day with its All Share Price Index (CASPI) gaining 132.6 points to settle at 17142 and the Selective Categories Index (CSCX) gaining 82 points to close at 10243.

The port city bourse traded 7.26 million shares and mutual fund units with a turnover volume of Tk 181.33 million.

[email protected]