Market rebounds sharply as BSEC meets central bank, PM

The Bangladesh Securities and Exchange Commission (BSEC) meetings with the Bangladesh Bank on Tuesday and Prime Minister Sheikh Hasina on Wednesday helped increase investor confidence.

Investors turned optimistic after the meeting between two regulators gave a positive nod on resolving policy issues that are limiting fund inflow into the stock market.

DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), gained 2.14% on Wednesday to close at 6,847 points.

Stocks opened higher from the beginning and the upsurge in the equity indices was led by the rebounds of the giant stocks Beximco Limited and Beximco Pharmaceuticals.

However, turnover, a crucial market indicator that reflects investors' participation in daily trading, declined 3.86% to Tk1,102 crore at the DSE.

The DSEX, after more than doubling in 15 months, went into a correction from its peak of 7,410 in mid-October and through some zigzags, it went below the 6,700 level on Tuesday.

A large number of investors were watchful during the trading hours as the situation was still gloomy to them, said stockbrokers.

Out of the 373 issues traded at the DSE, 293 advanced, 45 declined, and 35 remained unchanged.

Banking stocks made 30.77% of the DSE turnover on Wednesday, while pharmaceuticals and the miscellaneous sectors followed banks with 14.35% and 12.7% turnover contributions, respectively.

All sectors except for travel and leisure generated positive returns, out of which miscellaneous championed with 5.7% gains.

Indices at the Chittagong Stock Exchange (CSE) also closed higher on Wednesday.