Turnover hits 22-month high on new BSEC hopes
Masud Khan was appointed as chairman while three others were as commissioners at the BSEC on Thursday
Bangladesh's stock market continued to surge today (7 June) as investors welcomed BSEC's new leadership, with turnover jumping 13% to 22-month high in the first trading session following the new appointment on hopes of long-awaited capital market reforms.
Masud Khan was appointed as chairman while three others were as commissioners at the BSEC on Thursday last following the resignation of the previous chairman and its four commissioners.
According to Dhaka Stock Exchange (DSE) data, the benchmark index DSEX closed 41 points higher, after opening with a stronger gain of 74 points.
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While the turnover at the bourse surged to Tk1,529 crore marking the highest turnover since 11 August 2024. On 11 August at DSE, turnover was Tk2,010 crore, on that day DSEX surged 91 points, the data showed.
Meanwhile, majority stocks traded on the bourse saw price increase. Of the traded 393 stocks, 184 advanced, while 160 stocks declined and 49 stocks remained unchanged.
Despite increasing majority stocks, the market capitalization fell by Tk801 crore to Tk6.92 lakh crore due to price correction on some stocks.
The two other indices— DSES, the shariah index and DS30, the blue-chip index surged by 6.57 points and 19 points respectively to close at 1,115 and 2,087 points, the DSE data showed.
At the opening of the trading session, stocks surge amid buying pressure significantly pulling DSEC over 74 points in the first 12 minutes.
Later, as selling pressure became active on profit taking in some specific stocks, indices turned into red shading DSEX until 10.39am.
After that buying pressure became active on the trading floor that again pulled indices. Finally, the market ended on the green at the first trading session.
Akramul Alam, head of research at brokerage firm Royal Capital Ltd, said that a positive sentiment among investors has started to build following the assumption of office by the new commission. In particular, various positive signals from the commission regarding market reforms, increased transparency, and safeguarding investors' interests have helped restore an atmosphere of confidence in the market.
He said, "There had been a long-standing crisis of uncertainty and lack of confidence in the market. After the new commission took charge, investors are now hoping for effective initiatives to address various structural problems in the market. The positive assurances given by the commission have created new expectations among investors, the impact of which is also being reflected in trading activity and share prices."
Akramul Alam said that at the close of trading on Tuesday, share prices of several fundamentally strong companies had increased positively. This indicates that investors are gradually shifting away from rumor-driven or weak stocks towards quality companies.
He further said, "Following the continuous rise in the market over the past few sessions, some investors have attempted to book short-term profits, which is a normal market behavior. As a result, selling pressure was seen in some stocks, but this should not be viewed as a sign of market weakness. Rather, it is part of a healthy correction process."
According to him, after this profit-taking trend ends, there is a possibility of renewed buying pressure in the market. If investor confidence strengthens further and positive measures from the regulator continue, the upward trend in the market may broaden further.
He added, "In the current situation, both liquidity and investor participation in the market are increasing. If the positive policy signals and the momentum of confidence are sustained, the market may move into a stronger position in the days ahead."
Chairman-linked stocks led top gainer
Shares of companies linked to newly appointed BSEC Chairman Masud Khan surged on his first trading day in office, reflecting strong investor interest. Khan previously served as Group CEO of Crown Cement Group, whose sponsors also hold directorship positions in Premier Cement.
Crown Cement and Unilever Consumer Care, where Khan held key positions prior to joining at the BSEC, recorded gains during the session.
According to data, Crown Cement's share price increased 10% to Tk57.2, hitting the upper circuit breaker and triggering a trading halt. Premier Cement also rose 9.78% to Tk51.6 each.
Meanwhile, shares of Unilever Consumer Care increased 1.78% to Tk2,103 each, Khan earlier served as chairman and an independent director of Unilever Consumer Care.
Other gainers was Sonargaon Textile as its shares price surged 9.95% to Tk71.8 each, followed by Paramount Textile by 9.90% to Tk57.7 each, IPDC Finance by 9.84% to Tk21.2 each, Mercantile Insurance by 9.83% to Tk33.5 each.
Loss-making firms led loser list
Some loss-making companies, whose shares price abnormally surged in recent trading sessions, saw price declines amid selling-pressure today.
Meghna PET Industries, a non-performing firm since 2002, shares price fell 9.90% to Tk81.9 each. Its shares price surged significantly since March as its shares price was Tk23.6 each on 8 March. Since then, its share price gradually surged.
Another loss-making and closed company Meghna Condensed Milk's shares fell 9.82% to Tk42.2 each followed by Safko Spinning Mills by 9.21% to Tk20.7 each, SK Trims by 8.21% to Tk13.4 each, and Apex Spinning Mill by 7.94% to Tk290.8 each.
