Stocks snap 8-day losing streak, helped by margin loans

The decision to raise the margin loan limit seems to have paid off as the market broke a downward trend that lasted eight consecutive days.

The Dhaka Stock Exchange, Bangladesh’s leading stock market, rose 1.94 percent on Monday, the second trading day of the week. The Chittagong Stock Exchange gained 1.61 percent.

The stock market downturn began in the second week of May as instability in the global market and the rising value of the dollar spooked investors.

A sell-off caused indices to fall for eight straight days. In those eight days, the DSE fell 555.40 points, or 8.29 percent.

On Sunday, the Bangladesh Securities and Exchange Commission increased the margin loan limit in an effort to increase liquidity in the market and counteract the recent dip in the stock market.

The loan limit was raised from 80 percent to 100 percent, meaning that investors are now able to get 100 percent of their investment as a loan.