Regulatory relief for capital market intermediaries and bargain hunting in battered shares helped Bangladesh’s stock market extend its gains for a second consecutive session on Wednesday, pushing turnover to a seven-week high.
The Dhaka Stock Exchange’s (DSE) benchmark DSEX index gained 8.32 points, or 0.15 per cent, to close at 5,445.06 points.
Turnover rose 15.1 per cent to Tk757.70 crore from Tk658.50 crore in the previous session, its highest level since September 23.
Trading volume increased 17.3 per cent to 25.3 crore shares, while the number of transactions rose 4.4 per cent to 211,334.
Two regulatory developments helped improve sentiment, according to Prime Bank Securities, as the authorities eased pressure on market intermediaries and allowed some frozen beneficiary owner (BO) accounts to resume trading.
The Bangladesh Securities and Exchange Commission extended the deadline for brokers and merchant banks to resolve their negative equity positions until 2030.
The extension reduces the prospect of a sudden capital adjustment for intermediaries, Prime Bank Securities said in its daily market commentary.
In another development, more than 100 of 617 frozen BO accounts were reportedly allowed to resume trading, including buying and selling shares and adding funds, although cash withdrawals remain restricted, the brokerage said.
Financial institutions led sectoral gains, rising 2 per cent, followed by mutual funds at 1.7 per cent and life insurance at 1.5 per cent, according to EBL Securities.
LankaBangla Finance gained 7.52 per cent, IPDC Finance 6.23 per cent and United Finance 3.75 per cent. IPDC Finance recorded the highest individual turnover at Tk32.4 crore.
Textiles accounted for the largest share of trading, representing 23.7 per cent of turnover, or Tk180.4 crore, according to Prime Bank Securities.
Fuel and power accounted for 12 per cent, while general insurance contributed 9.8 per cent.
Saiham Textile Mills gained 7 per cent, while Envoy Textiles and Matin Spinning Mills fell 3 per cent and 1.8 per cent, respectively.
Despite the rise in turnover, the recovery remained selective.
The market recorded 193 advancing securities against 158 decliners, while the blue-chip DS30 index edged up just 0.10 per cent.
Intermittent selling pressure had eroded much of the market’s early gains as the absence of fresh positive catalysts kept investors cautious.
Ongoing domestic unrest also continued to weigh on sentiment, despite renewed buying in recently battered shares, EBL Securities said.
The Chittagong Stock Exchange also closed higher, with its CSCX and CASPI indices gaining 8.7 points and 19.8 points, respectively.
