Al-Arafah, Peoples Leasing shares defy market slide on hopes of board shake-up
Defying a broader market correction, Al-Arafah gained 7.45% to close at Tk17.3, while Peoples Leasing climbed 8.33% to Tk1.3 on the Dhaka Stock Exchange (DSE).
Shares of Al-Arafah Islami Bank and Peoples Leasing and Financial Services rose sharply today (16 July) as investors reacted positively to news of board restructurings, which many hope will restore operational efficiency and improve governance.
Defying a broader market correction, Al-Arafah gained 7.45% to close at Tk17.3, while Peoples Leasing climbed 8.33% to Tk1.3 on the Dhaka Stock Exchange (DSE).
The rally in Al-Arafah Islami Bank shares followed a major decision by Bangladesh Bank. On Wednesday, the central bank appointed 14 new directors to the bank's board, expanding it from five to 19 members.
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The move effectively allows Al-Arafah's founding shareholders to regain control after nearly a year under a board dominated by five independent directors appointed in August 2024 following a political transition and regulatory intervention.
At the same time, Peoples Leasing informed the bourses that its board had given in-principle approval to a proposal to bring back its original sponsors.
During its board meeting, the company noted it had received expressions of interest (EOIs) from certain sponsor shareholders willing to be included in the board.
The management has decided to forward the matter to the High Court Division of the Supreme Court for final consideration and appropriate orders, a step viewed by the market as a potential move toward stabilising the scam-hit institution.
Despite the gains in the two financial stocks, the broader market ended lower as the benchmark DSEX index fell 25 points to close at 5,900, snapping a five-day winning streak. The blue-chip DS30 index also dropped 15 points to finish at 2,227.
Market analysts from EBL Securities noted that the capital bourse retraced into a corrective phase as persistent intraday selling across major scrips exerted sustained downward pressure. While the market opened with some volatility, profit-taking in recently appreciated stocks gathered momentum throughout the session, dragging the majority of scrips into negative territory.
Market participation also saw a significant contraction, with daily turnover dropping by 26% to stand at Tk1,118 crore.
The market breadth remained bearish, with 240 issues declining compared to 103 that advanced, while 52 remained unchanged.
On the liquidity front, Techno Drugs emerged as the most traded stock, followed by Summit Alliance Port and Malek Spinning.
Among individual stocks, Techno Drugs and Global Heavy Chemical were also among the day's top gainers, alongside the rallying financial institutions. Usmania Glass and Zeal Bangla Sugar, meanwhile, ranked among the session's biggest losers.
