BSEC issues new rules for margin lending
The Bangladesh Securities and Exchange Commission (BSEC) has announced further relaxation of margin loan regulations to provide a boost to the country’s stock market.
As per the latest guidelines, listed firms that have maintained an “A” category status for three consecutive years and have a paid-up capital of Tk30 crore will now be able to see their stocks marginable up to a price earnings (PE) ratio of 50.
The BSEC had earlier relaxed margin loan regulations on 18 April to help lift the depressed stock market. Typically, stocks are marginable as long as their PE ratio is below 40, they are not in the Z category, they did not debut in the last 30 working days, and they have not moved up from Z category in the last seven working days.
The initial relaxation of margin rules two weeks ago had been applied to stable stocks that had remained in the “A” category for three consecutive years and had a capital size of Tk50 crore. This decision had helped the depressed stock market experience nine consecutive winning sessions till the end of April. However, some selloffs were experienced in May amid profit booking pressure.
Companies categorized as “A” typically pay at least 10% dividends and are regular in operations while holding annual general meetings. To further support the market, the BSEC has reduced the paid-up capital threshold.
The Dhaka Stock Exchange’s broad-based index, DSEX, closed 0.03% lower at 6,269 on Wednesday, after losing the early hour’s momentum.
Index Surge amid Slow Turnover
Dhaka Stock Exchange DSE, Bourses on the fourth working day of the week, June 7, ended with price index hikes & turnover drops.
This information is known from DSE sources.
782 crores 80 lakh shares were traded on this day. 304 crore 8 lakhs less trading was done in DSE today compared to the previous workday, 6 June, Shares worth Tk 1 thousand 86 crore 88 lakh shares were traded last time, Tuesday.
The benchmark index DSEX gained 22.79 points or 6,338. The Shariah-based index DSES added 3.04 points or 1,375, and the blue-chip index DS30 hiked 0.47 points or 2,189.
Of the issues traded, 123 advanced, 47 declined, and 178 remained unchanged.
Bangas Limited ranked top gainer on DSE, the share price increased by Tk 13.3 paisa or 10.00 percent. On this day, the share was last traded at Tk 146.30 paisa
Simtex Industries Ltd ranked top loser on the DSE, the share price dropped by Tk 1.60 paisa or 6.81 percent. On this day, the share was last traded at Tk 21.90 paisa.
DSE topped on trade is Meghna Life Insurance Co. Ltd 58 crore 2 lakh takas of shares of the company have been traded.
A total of 86 companies shares were traded in the Block on Dhaka Stock Exchange,88 lakh 10 thousand 362 shares of the companies were traded. The financial value of which is 48 crore 22 lakh taka.
DSE Aims to Attract Japanese Investments in the Stock Market Soon
Dhaka Stock Exchange (DSE) Chairman, Dr. Hafiz Muhammad Hasan Babu, announced his intention to attract Japanese investments to the stock market in the near future.
He made these remarks during a budget-related press conference held at a hotel in the capital city on Tuesday (June 6). Dr. Hasan emphasized the importance of actions rather than mere words, expressing his desire to demonstrate progress through tangible outcomes. He shared his numerous aspirations for the DSE and emphasized the need for collaboration to realize people’s dreams. This collaboration would require not only the government’s support but also the assistance of journalists.
Furthermore, Dr. Hasan mentioned the need to provide uninterrupted income from bonds, as the bond market is currently facing obstacles, partly due to taxes. He expressed the desire for a comprehensive evaluation of taxes as a final measure to ensure stability. Dr. Hasan also highlighted the importance of reducing the corporate tax rate for listed and non-listed companies by 10% compared to the dividend tax rate. Additionally, he proposed reducing the VAT rate from 15% to 10%.
Dr. Hasan reassured that despite any disappointment surrounding the budget, there is a strong willingness to take proactive steps in the stock market. These steps aim to restore people’s confidence in the market. The press conference was attended by Rubaba Dowla, the Independent Director of Dhaka Stock Exchange, and Professor Abdullah Al Mamun, among other officials from DSE.
Index Collapse on Bourse, Turnover Hits Tk 1000cr
Dhaka Stock Exchange DSE, Bourses on the third working day of the week, June 6, ended with price index & turnover drops.
This information is known from DSE sources.
1 thousand 86 crores 88 lakh shares were traded on this day. 169 crore 80 lakhs less trading was done in DSE today compared to the previous workday, 4 June, Shares worth Tk 1 thousand 256 crore 68 lakh shares were traded last time, Monday.
The benchmark index DSEX dropped 40.10 points or 6,316. The Shariah-based index DSES lost 10.00 points or 1,372, and the blue-chip index DS30 dropped 9.47 points or 2,188.
Of the issues traded, 25 advanced, 157 declined, and 182 remained unchanged.
Trust Islami Life Insurance Limited ranked top gainer on DSE, the share price increased by Tk 5.40 paisa or 9.96 percent. On this day, the share was last traded at Tk 59.60 paisa
Mir Akhter Hossain Ltd ranked top loser on the DSE, the share price dropped by Tk 6.00 paisa or 10.00 percent. On this day, the share was last traded at Tk 54.00 paisa.
DSE topped on trade is Associated Oxygen Ltd 52 crore 94 lakh takas of shares of the company have been traded.
A total of 378 companies shares were traded in the Block on Dhaka Stock Exchange, 1 crore 17 lakh 23 thousand 483 shares of the companies were traded. The financial value of which is 63 crore 59 lakh taka.
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