Thursday, 7 July, 2022

BSEC raises investment ceiling to Tk 30m

Stocks rebound on both bourses

BSEC raises investment ceiling to Tk 30m

The Bangladesh Securities and Exchange Commission (BSEC) has raised the investment ceiling for institutional investors to increase liquidity inflow in capital markets.

Each eligible investor except for the pension fund, approved provident fund and gratuity fund investors will have to increase their investment to Tk 30 million from the existing Tk 1 million, said a statement signed by Rezaul Karim, executive director of BSEC on Monday.

The BSEC took the decision at a commission meeting in a bid to raise the liquidity in the stock market through institutional investors. The decision came at a time when the market suffered massive losses in the last few weeks.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 118 points on Monday but in the previous eight trading days it lost 556 points.

Each approved pension fund, provident fund and gratuity fund needs to raise their investment to Tk 1.50 crore from Tk 50 lakh.

Meanwhile, the BSEC ordered Electronics Subscription System team to analyse the approval letter of the National Board of Revenue, audited financial reports and bank statements of each pension fund, provident fund and gratuity fund.

These funds will not be allowed to invest excess funds than the amount mentioned in their financial reports during IPOs, it added.

Meanwhile, after witnessing a downward trend in the eight sessions, stocks today rebounded in the Dhaka and Chittagong stock exchanges riding on the government steps to help revamp the ailing market.

The Bangladesh Securities and Exchange Commission (BSEC) raised the margin-loan ratio to 1:1 while the finance ministry is set to extend the tenure as well as the amount of the capital-market refinancing fund to help revamp the country's moribund capital market, reports BSS.

Following the news, the bargain hunters, including institutional investors, rushed to buy shares as soon as the market opened and the key index jumped over 100 points at the opening which sustained till the end of the session.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), soared 118.86 points or 1.93 per cent to settle at 6261. Two other indices also closed sharply higher with the DSE 30 Index, comprising blue chips, rising 32.58 points to finish at 2,309 and the DSE Shariah Index (DSES) soaring 15.26 points to close at 1,376.

Turnover, a crucial indicator of the market, stood at Tk 6.59 billion on the country's premier bourse, which was 3.37 per cent lower than the previous day's mark of Tk 6.82 billion.

Out of 376 issues traded, 343 advanced, 19 declined and 14 issues remained unchanged.

Beximco - the flagship company of Beximco Group- continued to dominate the turnover chart, followed by Shinepukur Ceramics, JMI Hospital Requisite Manufacturing, Bangladesh Shipping Corporation and IPDC Finance.

S Alam Cold Rolled Steels was the day's top gainer, rising 9.87 per cent, while Bangas was the worst loser, shedding 4.79 per cent.

The Chittagong Stock Exchange (CSE) also rebounded with the CSE All Share Price Index - CASPI -soaring 322 points to settle at 18,400 and the Selective Categories Index - CSCX rising 192 points to close at 11,039.

Of the issues traded, 207 advanced, 51 declined and 16 issues remained unchanged on the CSE.

The port city's bourse traded 9.90 million shares and mutual fund units with a turnover value of Tk 240 million.