Stocks climb on govt move to end BB-BSEC row

Stocks gained yesterday on the back of an increased participation of investors as expectations grew that the government's move to resolve the disputes between the Bangladesh Bank and the capital market regulator would yield better outcome.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose for the second straight day yesterday, surging 89 points, or 1.30 per cent, to end at 6,936.

In the first hour of trading, the index nosedived 90 points to 6,761 as the investors were in a selling mood because of the contradictory statements from the Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC).

The BSEC had claimed that it resolved all the disputes with the central bank in a meeting on Tuesday, and the banking regulator was going to address the issues.

But refuting the claim, the BB yesterday asked the commission to change its notification, creating panic among the investors.

However, the market's direction reversed after news broke that the finance ministry is going to arrange a meeting next week to discuss the issues.

Soon after the first hour, investors came to know that there would be a meeting in the finance ministry for the development of the capital market. And this motivated them to make fresh bets on stocks, said International Leasing Securities in its daily market review.

As a result, the premier bourse ended in the black.

Among the major sectors, financial institutions rose 4.9 per cent and fuel and power advanced 4.2 per cent. The life insurance sector fell 0.5 per cent.

On the DSE, 208 stocks advanced, 118 fell, and 48 remained the same. Turnover plunged 12.9 per cent to Tk 1,245 crore.

Sena Kalyan Insurance topped the gainers' list as it rose 9.89 per cent, followed by Acme Pesticides, MJL Bangladesh, Power grid, and Mithun Knitting.

The Chittagong Stock Exchange also rose.

The CASPI, the main index of the bourse in the port city, rose 256 points, or 1.23 per cent, to close the day at 20,254. Of the 265 stocks traded, 152 rose, 87 declined, and 26 were unchanged.