Dhaka stocks rebounded on Monday after Sunday’s unprecedented plunge, with investors going for bulk purchase of shares mainly due to postponement of all stringent directives by the Securities and Exchange Commission.
The benchmark general index of the Dhaka Stock Exchange advanced by 304.87 points, or 3.98 per cent, to close at 7,959.28
points. The index had suffered an all time high plunge of 551.77 points on the previous day triggered by a series of stringent directives issued by the Securities and Exchange Commission and the Bangladesh Bank to cool down an overheated market, analysts said.
The DSE general index was hit by its second highest single-day fall of 284 points on December 13 last and the third-highest plunge of 233 points on November 6, 1996.
In the wake of demonstrations staged by investors watching the market to crumble on Sunday, the SEC postponed all of its recent directives, mostly short-term ones.
The commission will issue some long-term directives to sustain the market, SEC chairman Ziaul Haque Khandokar told New Age on Monday.
Salahuddin Ahmed Khan, a former chief executive officer of the Dhaka bourse who had returned to his original occupation of a finance teacher at Dhaka University, said the market gained on the day as the SEC had postponed its directives to inspire investors to go for buying.
Co-ordination between the SEC and the Bangladesh Bank is needed for developing the securities market, he added.
Akter H Sannamat, managing director of Prime Finance and Investment, one of the country’s leading merchant banks, said the SEC postponed its directives to increase the confidence of investors about the current market situation.
But, investors are yet to gain full confidence as most of them think the SEC may issue short-term stringent directives again, Sannamat said, adding that the market watchdog should issue long-term directives to boost the capital market.
The scrip of most of the sectors in the market, except the mutual funds, gained on the day riding on the massive buying pressure, said a stockbroker.
The SEC on Sunday also approved shifting the trading of GrameenPhone, a heavyweight issue, and Marico Bangladesh from the spot market to the regular one to fuel the index, he added.
The share price of GrameenPhone rose by Tk 37.20 on Monday, touching the 17.50 per cent circuit-breaker. The closing price of the GP share was Tk 249.8.
Of the 245 issues traded on the DSE, 211 advanced, 31 declined, and three remained unchanged.
The daily turnover at the bourse was Tk 1,459.26 crore, down by Tk 27.55 crore.
GrameenPhone topped the turnover leaders with 45.18 lakh shares worth Tk 110.45 crore traded on the day.
The rest of the turnover leaders were Beximco, United Commercial Bank, Titas Gas, Bay Leasing and Investment, AB Bank, Prime Bank, Marico Bangladesh, and Southeast Bank.
GrameenPhone was the biggest gainer of the day, posting a 17.49-per cent rise in its share price, while Sonali Aansh was the worst loser.
