Dhaka stocks advanced on Wednesday after a two-day fall as investors regained their buying mood after the Bangladesh Securities and Exchange Commission clarified issues related to the implementation of new margin loan interest rate.
The BSEC on Tuesday issued a directive that 12 per cent ceiling on margin loan interest rate would be implemented on January 1, 2022.
The Dhaka and Chittagong stock exchanges on Tuesday morning informed brokerage houses to implement the ceiling on July 1, 2021 that created confusion among investors, market operators said.
They said that brokerage houses and merchant bankers had gone for heavy sales on Tuesday to minimise margin loans from investors’ portfolios.
DSEX, the key index of the Dhaka Stock Exchange, advanced by 0.71 per cent, or 38.95 points, to close at 5,461.34 points on Wednesday after losing 75.81 points in the previous two sessions.
The key index started gaining from the very beginning of Wednesday’s session and finished the session with moderate gains.
A surge in share prices of BEXIMCO, LafargeHolcim Bangladesh, Beximco Pharmaceuticals, LankaBangla Finance and National Life Insurance added 23 points to the index.
The insurance sector continued dominating the market trend as the sector logged 37 per cent of the day’s total turnover and share prices of the sector soared by 3.3 per cent on Wednesday.
Out of the 46 insurance companies traded, 40 advanced, four declined and two remained unchanged.
Average share prices of miscellaneous, non-bank financial institution and energy sectors advanced by 2.1 per cent, 0.9 per cent and 0.2 per cent respectively.
Although the government has extended the Covid restriction period to May 5, it removed almost all restrictions on public movement and other activities with the reopening of shops and shopping malls on Sunday.
EBL Securities in its daily market commentary said, ‘Investors’ positive sentiment and increased participation have uplifted the market as they believe that the impact of Covid restrictions on businesses would be less critical due to the continuation of industrial activities amidst the lockdown.’
Turnover on the DSE increased to Tk 940.32 crore on Wednesday from Tk 824.36 crore in the previous session.
Of the 357 scrips traded on the DSE on Wednesday, 170 advanced, 109 declined and 71 remained unchanged.
DS30, a composition of 30 large capitalised companies, advanced by 0.95 per cent, or 19.87 points, to close at 2,112.36 points on Wednesday.
Shariah index DSES also added 0.28 per cent, or 3.58 points, to settle at 1,249.03 points.
BEXIMCO led the turnover chart with shares worth Tk 89.92 crore changing hands on the day.
LafargeHolcim Bangladesh, British American Tobacco, Beximco Pharmaceuticals, LankaBangla Finance, National Feed Mills, Federal Insurance Company, BD Finance, Robi and Asia Pacific Insurance were the other turnover leaders on the day.
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