Stocks rebound on move to reopen 617 BO accounts

Stocks rebounded on Wednesday after three consecutive sessions of sharp declines, as the Bangladesh Securities and Exchange Commission's (BSEC) decision to reopen 617 long-suspended Beneficiary Owner (BO) accounts lifted investor sentiment.
The benchmark index of the Dhaka Stock Exchange (DSE) gained 57 points, while share prices rose across most listed companies on both the Dhaka and Chittagong stock exchanges.
The recovery came as investors welcomed the regulator's decision to allow trading through the previously frozen BO accounts, raising hopes of improved market liquidity and greater investor participation.
However, despite the broad-based rise in share prices, turnover declined on both bourses, suggesting that the recovery in investor sentiment has yet to translate into stronger trading activity.
The Dhaka Stock Exchange Brokers Association (DBA) welcomed the BSEC's decision, saying it would allow a substantial volume of shares that had remained locked for years to return to trading.
In a press release issued on Wednesday, the association thanked BSEC Chairman Masud Khan, the commissioners and relevant officials for taking the initiative.
The 617 BO accounts had been suspended following requests from various government agencies and decisions by the commission.
On 20 July, the DBA submitted a written application to the BSEC chairman, seeking the reopening of the long-suspended accounts, provided there were no legal restrictions or prohibitions imposed by relevant government or regulatory authorities.
DBA President Saiful Islam expressed gratitude to the commission for considering the association's request and deciding to allow trading through the frozen accounts.
The association said the move would help release a substantial volume of shares into the market, improve liquidity, increase trading activity and encourage greater investor participation.
It also expressed hope that the decision would help restore confidence in the capital market.
News of the decision spread among investors before trading began on Wednesday, triggering increased buying interest from the opening session.
Share prices of most companies rose during early trading, pushing the key indices higher. The upward trend continued throughout the session, allowing the market to close firmly in positive territory.
At the DSE, share and unit prices of 282 companies rose, while 51 declined and 50 remained unchanged.
The benchmark DSEX index advanced 57 points to close at 5,341.
The DSE-30 index, comprising 30 selected blue-chip companies, gained 15 points to reach 2,037, while the DSE Shariah Index rose six points to settle at 1,036.
Despite the gains, turnover on the premier bourse fell to Tk522.28 crore from Tk565.82 crore in the previous session, marking a decline of Tk43.54 crore.
Matin Spinning Mills PLC topped the turnover chart, with shares worth Tk 32.55 crore changing hands.
Envoy Textiles ranked second with transactions worth Tk19.93 crore, followed by Shahjibazar Power Company with Tk18.74 crore.
The Chittagong Stock Exchange (CSE) also ended the day higher, with share and unit prices of 81 companies advancing among the 147 issues traded. Prices of 41 declined, while 25 remained unchanged.
The CSE All Share Price Index (CASPI) gained 100 points.
However, turnover on the port city bourse dropped sharply to Tk4.39 crore from Tk12.71 crore in the previous session, reflecting subdued trading activity despite the rise in share prices.