Indices gear up over regulatory intervention
DSEX advanced 2.4% to close at 6,630 on Wednesday
Indices of both stock exchanges in the country geared up after regulatory intervention to stop the recent free-fall caused by the Russia-Ukraine war.
On Tuesday, the Bangladesh Securities and Exchange Commission (BSEC) lowered the circuit breaker limit to 2% from 10% in a bid to rein in a massive collapse in share prices and thereby curb further losses of investors.
As the decision took effect on Wednesday, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), returned to positive and advanced 2.4% or 155 points to close at 6,630.
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The Chittagong Stock Exchange's (CSE) all share price index CASPI also surged 2.01% to close at 19,400 on Wednesday.
EBL Securities said in their daily market review that in order to restore market confidence, the BSEC has implemented temporary circuit breaker regulations with a lower level of 2% and directed the Investment Corporation of Bangladesh to assist the market from the stabilisation fund.
Investors regarded these changes positively and returned to a buying spree, as a result of which the market saw an upsurge.
Besides, the DSE observed increased participation while turnover slightly advanced by 3.6% and stood at Tk770 crore compared to the previous session.
On the sectoral front, textile issues exerted the highest turnover followed by pharma and miscellaneous stocks.
All of the sectors displayed stellar performance, out of which general insurance, IT, and financial institutions exerted the highest positive returns on the DSE.
Out of the 384 issues traded on the Wednesday session, 365 advanced, only 3 declined, and 16 remained unchanged.
The general insurance sector dominated the top ten turnover chart on the DSE as six out of the ten were insurance companies.
