Dhaka stocks rose on Wednesday after a plunge in the previous session as some investors went for buying shares.
DSEX, the key index of Dhaka Stock Exchange, added 0.34 per cent, or 19.37 points, to close at 5,714.74 points on Wednesday after losing 141 points in the previous three sessions.
The key index went through a volatile session on Wednesday and finished in the positive trajectory as investors went for cautious trading, market operators said.
They said that investors got panicked after a fall of 93 points in the previous session as many brokerage houses and merchant bankers went for forced sales to comply with a BSEC instruction over margin loan interest rate.
The Bangladesh Securities and Exchange Commission on January 13 set the upper ceiling on interest rate of margin loans provided by stockbrokers and merchant bankers to investors at 12 per cent that includes a charge of maximum 3 per cent spread over cost of funds. The directive will come into effect on February 1.
However, the brokerage houses and merchant bankers urged the BSEC to defer the effectiveness of the directive until December 2021.
The BSEC at a meeting with top 30 brokerage houses on Wednesday decided to defer the effectiveness of the directive to June 30.
Moreover, the media reported that state-run Investment Corporation of Bangladesh moved to issue a bond worth Tk 8,500 crore for the development of the stock market that might motivated some investors to invest in the market on Wednesday.
A Switzerland-based investment bank initially expressed its intention to invest in the bond.
Besides, companies have started declaring December-end financial results and investors are taking position accordingly, market operators said.
Berger Paints Bangladesh declared earnings per share of Tk 36.03 for April-December 2020, which was Tk 34.97 in the same period of the previous year.
Maksons Spinning Mills Limited announced that its EPS was Tk 0.51 in July-December 2020 against Tk 0.02 in July-December 2019.
Share prices of both of the companies advanced on Wednesday.
A number of large capitalised companies, including British American Tobacco, City Bank, LankaBangla Finance and Grameenphone soared on the day that saved the market from a fall.
DS30, a composition of 30 large capitalised companies, advanced by 0.72 per cent, or 15.60 points, to close at 2,178.6 points on the day.
Market operators said that share prices of one-third of entities remained unchanged and those of more than 50 companies remained stuck in their floor prices as the market was moving on the back of a few companies.
Of the 360 scrips traded on the DSE on Wednesday, 125 declined, 128 advanced and 101 remained unchanged.
Turnover on the DSE dropped to Tk 905.9 crore on Wednesday compared with that of Tk 1,125.45 crore in the previous session.
Shariah index DSES also increased by 0.03 per cent, or 0.4 points, to settle at 1,279.88 points.
Bangladesh Export Import Company led the turnover chart with its shares worth Tk 132.44 crore changing hands on the day.
Robi, British American Tobacco, Beximco Pharmaceuticals, LankaBangla Finance, Energypac Power Generation, Square Pharmaceuticals, United Power Generation Company, Summit Power and City Bank were the other turnover leaders on the day.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Stocks