• Thursday, Feb 02, 2023
  • Last Update : 09:54 am

Stocks bounce back strong as regulator raises margin loan limit

  • Published at 02:58 pm April 6th, 2021
web-DSE-File photo of Dhaka Stock Exchange Limited
File photo of Dhaka Stock Exchange Limited Mehedi Hasan/Dhaka Tribune

DSEX on Tuesday charged up 103.89 points or 2.01% to end at 5,281 points

The key index of the Dhaka Stock Exchange (DSE), DSEX, rebounded strongly back to green from the last two sessions after witnessing the biggest single-day fall in one year as the investors took some position on lucrative price levels.

DSEX on Tuesday charged up 103.89 points or 2.01% to end at 5,281 points.

The market opened higher which persisted till the end, riding on the initiative of the securities regulator to increase the margin loan limit for the investors to curb free-fall of the share prices, market insiders said.

Investors will get a margin loan ratio of 1:0.80, if the key index of the DSE stays below 7,000 points as per the latest decision of the Bangladesh Securities and Exchange Commission (BSEC). For example, the stock investors will get a maximum loan of Tk80 if they purchase shares of Tk100.

However, if the DSEX exceeds the 7,000-mark, the loan limit will come down to 1:0.50.

Earlier, investors got margin loans of Tk50 against buying shares worth Tk100.

Meanwhile, the turnover increased by 114.89% to Tk508 crore. The general insurance sector dominated the turnover chart covering 26.8% of total turnover.

EBL Securities in its daily market commentary said that the market upturned the damage from the initial plunge on lockdown declaration and the index added 192 points in the preceding days.

Lockdown worries appeared to cool down and investors’ attitude turned positive towards the bourse due to relentless efforts from the market regulator.

Beximco secured the leadership position on the top turnover chart with a turnover of Tk44.3 crore with its share price closing at Tk74.2 per share. The stock was followed by Robi Axiata with Tk38.1 crore, Asia Pacific General Insurance with Tk32.2 crore, LankaBangla Finance with Tk21.1 crore, and Beximco Pharma with Tk16 crore.

Islami Insurance secured the highest gain of 10% during the session. The stock was followed by Northern General Insurance with 10%, Bangladesh National Insurance with 9.9%, Federal Insurance with 9.9%, and Continental Insurance with 9.9%.

Mercantile Bank had the worst luck with its price declining by 12%. The stock was followed by Bangladesh Industrial Fin with 4.8%, ACI Formulations with 2.9%, ICB Islamic Bank with 2.8%, and Southeast Bank 1st Mutual Fund with 2.4%.

Among the traded issues, 240 gained, 15 declined, and 91 remained unchanged during the session in DSE, while 146 gained, 12 declined, and 30 remained unchanged at the Chittagong Stock Exchange.

The port city bourse also settled on the green trajectory. The selected indices (CSCX) and All Share Price Index (CASPI) advanced by 178.9 points and 297.1 points, respectively.

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