Stock Market Jumps on News of 617 BO Accounts Being Unblocked, DSEX Rises 57 Points
The news that 617 Beneficiary Owners (BO) accounts, suspended for a long time, have been unblocked and allowed to trade again has brought a major positive change to the country's capital market. The decision by the regulator, the Bangladesh Securities and Exchange Commission (BSEC), has created confidence among general and institutional investors, with a direct impact on share trading.
On Wednesday, most companies' share prices rose on the main bourse, the Dhaka Stock Exchange (DSE), and on the Chittagong Stock Exchange (CSE), while the main indices posted large jumps.
As the BSEC's positive message spread in the market before trading began, strong interest in buying shares was seen from the start. That trend held until the end of the day, closing the working day with a big rise.
At the end of the day, the DSE's main index, DSEX, rose 57 points from the previous working day to stand at 5,341 points. The DSE-30 index of the top 30 companies rose 15 points to 2,037 points, and the Shariah-based DSES index rose 6 points to 1,036 points.
Of the companies traded on the DSE during the day, the prices of shares and units of 282 companies rose. In contrast, only 51 lost value and the market prices of 50 remained unchanged.
Among dividend-paying 'A' category companies, 148 saw their share prices rise, 24 fell and 18 were unchanged. Among mid-quality companies, 59 rose against only 6 falls. Among the 'Z' group companies that failed to distribute dividends, 75 rose, 20 fell and 28 were unchanged. In the mutual fund sector, 14 rose against 5 falls.
Despite the big rise in indices, total turnover on the DSE shrank somewhat to Tk 522.28 crore, which is Tk 43.54 crore less than the previous working day's Tk 565.82 crore.
Matin Spinning topped turnover, with Tk 32.55 crore of its shares changing hands. Envoy Textile was second with Tk 19.93 crore of shares traded, and Shahjibazar Power was third with Tk 18.74 crore.
Also on the top turnover list were Sayham Textile, Fine Foods, Far Chemical, Sonargaon Textile, Paramount Textile, Brac Bank and Provati Insurance.
On the Chittagong Stock Exchange (CSE), meanwhile, 81 of the 147 companies traded rose, taking the overall CASPI index up 100 points, although total turnover there fell to Tk 4.39 crore.
