Dhaka bourse rallies on speculation over BSEC leadership change
DSEX rebounds 72 points after previous session’s 138-point fall over the US-Israel-Iran conflict
The Dhaka stock market rebounded sharply yesterday, shrugging off a global selloff triggered by escalating tensions in the Middle East, as speculation over a potential change in the Bangladesh Securities and Exchange Commission (BSEC) leadership spurred buying interest among local investors.
Market insiders said optimism surrounding the possible resignation of BSEC Chairman Khondoker Rashed Maqsood drove the rally throughout the session, even though no official announcement was made.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) jumped 72 points, or 1.32%, to close at 5,534, recovering from a steep 138-point fall in the previous session caused by concerns over the Iran-US-Israel conflict.
The blue-chip DS30 index gained 18 points to settle at 2,135.
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Market breadth turned strongly positive, with 340 issues advancing against 42 decliners, while 12 remained unchanged.
Turnover inched up to Tk780 crore, indicating improved participation, and the bourse's market capitalisation rose by around Tk4,000 crore.
A managing director of a leading brokerage told The Business Standard that the rebound was largely sentiment-driven. "The market reacted to a rumour circulating from early trading hours that the BSEC chairman might step down. Investors took fresh positions hoping a leadership change could help restore confidence in a market that has struggled in recent years," he said.
The rumour gained traction following the resignations of several high-profile officials, including the insurance regulator's chairman, the chairman of Sadharan Bima Corporation, and the chairman of Sonali Bank.
The earlier replacement of the Bangladesh Bank governor also reinforced expectations of broader institutional reshuffling.
Although Maqsood did not resign during Monday's session, speculation continued on social media about the possible appointment of a new chairman.
Investors appeared willing to bet on anticipated reforms rather than wait for official confirmation.
Finance Minister Amir Khosru Mahmud Chowdhury recently hinted at restructuring the securities regulator, noting that sustainable and structural reforms would be necessary for long-term market stability.
Finance ministry officials indicated that the government has already begun searching for a new BSEC chairman and may undertake broader institutional changes to address long-standing weaknesses in the capital market.
On the sectoral front, bank stocks dominated turnover, accounting for 26.5% of total transactions, followed by pharmaceuticals at 16.8% and textiles at 7.9%.
City Bank led the turnover chart with Tk46 crore in transactions, followed by Orion Infusion, BRAC Bank, Khan Brothers PP Woven Bag, and Bank Asia.
Most sectors closed in positive territory, with financial institutions posting the highest gain at 4.5%, followed by services at 3.1% and travel at 3.0%. Individual gainers included Regent Textile, New Line Clothings, LankaBangla Finance, Olympic Accessories, and BIFC, each surging 10%.
On the losing side were Rahima Food, Information Services, Intech, Grameen Scheme Two Mutual Fund, and ICB Employees Provident Mutual Fund.
The upbeat sentiment extended to the Chittagong Stock Exchange (CSE), where the CSCX index rose 76 points to 9,498 and the CASPI index advanced 148 points to 15,500.
Turnover at the port city bourse climbed 52% to Tk19.44 crore.
