Dhaka stocks rise as easing of BO restrictions boosts sentiment

The Dhaka Stock Exchange (DSE) started the week on a positive note today (15 November), with renewed buying in undervalued stocks and improved investor sentiment following regulatory moves to ease restrictions on frozen beneficiary owner (BO) accounts, lifting the indices and turnover.

The benchmark DSEX gained 15.65 points, or 0.29%, to close at 5,460.56, up from 5,444.91 in the previous session.

The blue-chip DS30 index advanced 18.71 points, or 0.91%, to 2,078.11, while the Shariah-based DSES rose 7.56 points, or 0.71%, to 1,064.86.

Turnover increased 5.8% to Tk739 crore from around Tk699 crore in the previous session, indicating a modest improvement in trading activity.

Market insiders said the Bangladesh Securities and Exchange Commission’s (BSEC) recent decisions to ease restrictions on selected frozen BO accounts had helped improve investor sentiment. Institutional and individual investors were also taking fresh positions in fundamentally sound stocks that had become undervalued following prolonged market corrections.

Investors were selectively seeking opportunities in companies with relatively strong fundamentals and growth prospects, while the disclosure of quarterly financial results was prompting portfolio adjustments, they said.

On 3 November, the BSEC decided to ease trading restrictions on selected BO accounts that had remained frozen for more than two years. Eligible account holders were allowed to buy and sell shares, inject fresh funds and adjust their margin facilities, although restrictions on fund withdrawals remained in place.

On 13 November, the regulator conditionally lifted its freeze order on 93 BO accounts belonging to seven individuals. The accounts had been frozen on 21 August 2024.

According to the regulator’s order, 32 accounts belong to Abul Khayer Hiru, 23 to Kazi Sadia Hasan, 11 to Sayadur Rahman, 10 to Konika Afroze, eight to Abul Kalam Matber, five to Ferdoushi Begum and four to Sajed Madbar.

The latest decision allows regular secondary-market trading only. Withdrawals or transfers of funds, share transfers and block-market transactions remain prohibited. The facility also does not cover shares under pledge, lien or lock-in, or accounts subject to separate restrictions imposed by courts or other competent authorities.

Market participants said the regulatory moves could help restore some investor confidence, although a sustained recovery would depend on stronger corporate fundamentals, improved earnings and broader economic stability.

Meanwhile, EBL Securities, in its daily market commentary, said the market opened higher and maintained its positive trajectory throughout the session as buying in selected stocks with improved financial results outweighed intermittent selling pressure.

The brokerage also highlighted the contribution of Islami Bank shares to the market’s upward movement. Buying interest in the stock increased following reports of a potential Tk6,000 crore government financing package to support the bank’s revival. The bank’s shares gained 9.86% during the session.

On the sectoral front, textile stocks accounted for the highest share of turnover at 21.7%, followed by fuel and power at 16.8% and pharmaceuticals at 14.3%.

Jute stocks posted the highest sectoral gain of 3.6%, followed by mutual funds at 2% and textiles at 1.9%. In contrast, life insurance declined 1.4%, information technology 1.3% and general insurance 1%.

According to BRAC EPL Stock Brokerage, banking stocks led gains among large-cap sectors, rising 1.03%. Pharmaceuticals advanced 0.65% and telecommunications 0.10%. However, engineering and non-bank financial institutions declined 0.40% and 0.92%, respectively.

Shahjibazar Power was the most traded stock, with turnover of Tk27 crore, although its share price fell 3.4%. Baraka Patenga Power and Saiham Textile were also among the most actively traded securities.

Wata Chemicals led the gainers, rising 9.98%, followed by Islami Bank at 9.86% and Green Delta Mutual Fund at 9.76%.

On the losing side, GSP Finance Company dropped 8.57%, ACI Formulations fell 7.19% and Khulna Power declined 7.02%.

Despite the rise in the benchmark index, market breadth remained negative, with 210 issues declining against 133 advancing, while 37 remained unchanged.

At the Chittagong Stock Exchange, the All Share Price Index (CASPI) gained around 41 points to close at 14,603, while the Selective Categories Index (CSCX) advanced 21 points to 8,976. Turnover at the port city bourse stood at Tk11 crore.