Troubled markets in focus Dhaka bourse leaders meet new chairman of SEC

op leaders of the Dhaka Stock Exchange (DSE) yesterday called on the newly appointed chairman of the Securities and Exchange Commission, M Khairul Hossain, and member Helal Uddin Nizami.

DSE President Shakil Rizvi, Senior Vice President Ahasanul Islam Titu, Chief Executive Officer Satipati Moitra and other directors were present at the meeting at the SEC in Dhaka.

“We discussed how to restore investors' dented confidence,” said Rizvi. “The chairman has assured us that he would not favour anybody, as his concept about the capital market is very clear.”

“We discussed how we can help industrialisation in the country through capital market,” said the DSE chief.

Rizvi said the delegates also requested the commission to issue new directives for the greater interest of investors.

He said some old securities laws should be amended as soon as possible. The commission should also give power to DSE so that the country's premier bourse can issue approval to open new brokerage branch.

“The issue of increasing the number of new initial public offerings in the market was a major part of the discussion with the new chairman,” Rizvi told The Daily Star.

Titu said: “It is very critical moment for the stockmarket so the commission should issue investors-friendly directive to restore their confidence.”

Meanwhile, stocks gained flat yesterday through topsy-turvy trend, as the investors went for buying shares with new-found confidence. Some of them also took profits.

The benchmark general index of DSE gained 2.95 points, or 0.05 percent, to close at 5,791 points, riding on a 175-point climb on Sunday.

The selective categories index of Chittagong Stock Exchange gained 13.95 points, or 0.13 percent, to close at 10,397.

Investors anticipate the government is very serious about implementing the recommendations of the probe report, said retail investors.

“Market started with positive note as investors reacted positively to the appointment of new boss of the regulator as the part of the stockmarket reform. But the profit-booking after consecutive previous sessions' gain reined in the rally,” said Lankabangla Securities in his daily market analysis.

“Intraday volatility was very high as many investors were yet to get full confidence and rather preferred to wait some sessions to see the stability of market,” it said.

On the day, pharmaceuticals lost 0.71 percent, fuel and power 0.74 percent and ceramic 2.96 percent, while banks gained 1.17 percent.

Total turnover stood at Tk 609 crore, 8.2 percent higher on the previous day.

Of the 251 issues traded on the DSE floor, 93 advanced, 151 declined and seven remained unchanged.

Beximco topped the turnover chart with 11.20 lakh shares worth Tk 19.61 crore changing hands.

Kay and Que was the biggest gainer of the day, posting an 8.69 percent rise, while Janata Insurance was the worst loser, shedding 49.52 percent.

Also yesterday, the board of directors of DSE approved listing of three companies including two mutual funds.

Of them, EBL NRB Mutual Fund and Southeast Bank First Mutual Fund will make debut on today, while Barakatullah Electro Dynamics will make debut on Sunday.

However, the board did not take any decision on the listing of MI Cement Factory Ltd.

“We will discuss the MI Cement issue with the SEC chairman on Sunday to reach a decision,” said Titu.