Dhaka, Bangladesh (BBN)- The country’s stocks ended higher on Monday after four sessions, as the investors went for fresh buying following the news that the High Court (HC) rejected sponsor-directors' writ petitions, filed challenging the SEC directive.
The HC rejected on the day all three writ petitions filed by some sponsor-directors and upheld the securities regulator's directive on mandatory share holding by sponsor-directors.
Rakibur Rahman, President of the DSE, said the rejection of writ petitions filed challenging the mandatory share holding by sponsor-directors is a 'milestone' for the history of stock market.
"With the verdict, it has become very clear that if you (directors) don't have two per cent shares, you cannot remain in the company's board of directors," he said.
This would make a positive impact in the stock market and make it more stable in near future, he noted.
The Dhaka Stock Exchange (DSE) started with a positive note, gaining 88 points within first hour.
Meanwhile, the news of verdict added DGEN more 96 points within next 5-10 minutes. After that it declined steadily and finally ended 50 points higher.
The DGEN, the benchmark general index of the Dhaka Stock Exchange (DSE), gained 50.50 points or 1.01 per cent to close at 5,022.95.
The premier bourse lost over 80 points in the last four trading sessions since Tuesday.
The broader All Shares Price Index (DSI) rose 40.92 points or 0.97 per cent to close at 4,240.38. The DSE-20 Index comprising blue-chip shares also advanced 23.14 points or 0.61 per cent to close at 3,796.29.
The turnover value increased substantially and stood at BDT 4.77 billion which was 71.58 per cent higher compared to BDT 2.78 billion in the previous session.
This was also the highest turnover value in last 11 trading sessions since May 2, when it was recorded BDT 5.00 billion.
Out of 259 issues traded, 178 advanced, 65 declined and 16 remained unchanged.
A total of 92.29 million shares changed hands on the day against 58.55 million in the previous session. The trade deals also increased to 113,238 against Sunday's 71,461.
The total market capitalization of the DSE stood at BDT 2,631.08 billion against BDT 2,612.15 billion in the previous session.
All the sectors gained on the day. Among the major sectors, fuel and power gained 1.35 percent followed by non-banking financial institutions (NBFIs) 1.30 percent, banks 0.88 percent, pharmaceuticals 0.54 percent and telecommunications 0.43 percent.
LankaBangla Finance topped the turnover chart with shares worth BDT 226.04 million changed hands.
The other turnover leaders were SIBL, Grameenphone, Lafarge Surma Cement, Meghna Petroleum, Beximco Limited, Jamuna Oil, Aftab Automobiles, Square Pharma and MI Cement.
Reliance Insurance was the day's highest gainer posting a rise of 6.45 percent.
It was followed by Anwar Galvanising, Hakkani Pulp and Paper, Bangas, CMC Kamal, ICB AMCL First Mutual Fund, Jamuna Bank, Libra Infusion, Desh Garments and Power Grid.
The other top losers included Tallu Spinning, Modern Dyeing, Aziz Pipes, National Tea, Pragati Life Insurance, Paramount Insurance, Savar Refactories, Popular Life Insurance, Eastern Insurance and IFIC Bank.
On the other hand, Chittagong Stock Exchange (CSE) key index, CSCX, gained 86.66 points to close at 9495.35.
The port city bourse shed 31.38 points and 4.49 points respectively on Sunday and Thursday while 27.57 points on Wednesday. The bourse lost another 81.33 points on Tuesday.
The port city bourse turnover saw a sharp rise posting BDT 930 million against BDT 456.20 million and BDT 733.60 million recorded on Sunday and Thursday respectively.
The turnover was BDT 472.30 million on Wednesday while it was BDT 539.90 million on Tuesday.
At the CSE, 144 gained, 22 suffered losses and 14 remained unchanged at the end of the day’s trading.
BBN/SSR/AD-22May12-10:42 am (BST)
