DSEX turns around to rise 1.76% after BSEC meeting

The capital market has bounced back following a meeting between Bangladesh Securities and Exchange Commission and the Dhaka Stock Exchange aimed to arrest a freefall.

The main index, DSEX, added 97 points or 1.76 percent to close Sunday at 5,615 after opening the week with a slight fall in early hours.

Shares worth Tk 6.13 billion were traded on the market, leading DSE to regain market capital of Tk 81.31 billion in a day.

Out of 396 shares and mutual funds that changed hands, 300 rose, 52 fell and 44 remained unchanged.

The BSEC intervened last Wednesday after the index lost 815 points in less than two and a half months.

It lowered the limit on single-day share price decline from 10 percent to 3 percent. The share price of the three companies in the floor price are not allowed to decrease.

A day later, on the last business day of the week on Thursday, the DSEX shed 60 points or 1 percent to 5,518. The index was at 5,517 points earlier on May 2, 2021.

DSE directors responded by sitting with BSEC Chairman Shibli Rubayat Ul Islam after Thursday’s trading.

Like the DSE Brokers Association, the directors opposed setting the limit of share price fall.

The state-owned Investment Corporation of Bangladesh also held a meeting with the BSEC. The BSEC chairman urged the corporation to invest in the capital market according to its capacity.

Among these initiatives, the DSE index returned to a positive trend on Sunday.

BSEC Executive Director and spokesperson Rezaul Karim told http://bdnews24.com: “The commission is taking a series of initiatives to benefit the investors and develop the market. As a result, the market is returning to a positive trend.

“There are still a large number of investable shares. A number of good quality stocks are still below expected prices. There are investment opportunities. The market will be better if institutional and individual investors come forward,” he said.