Stocks rebounded on Thursday, snapping a six-session losing streak, as investors returned to selective shares after the Dhaka Stock Exchange (DSE) published a fresh list of securities eligible for margin financing under the revised rules.
The prime bourse published a list of 139 marginable securities, providing investors and brokerage houses with greater clarity over stocks eligible for margin loans under the amended regulatory framework.
The prices of 92 of the 139 marginable securities rose on Thursday, while 35 declined and 12 remained unchanged, indicating relatively broad-based buying in the newly eligible securities.
Three marginable companies—Sikder Insurance, Techno Drugs and Continental Insurance—featured among the top 10 gainers. Sikder Insurance surged 9.89 per cent, becoming the second-highest gainer of the day, while Techno Drugs and Continental Insurance rose 5.13 per cent and 4.25 per cent respectively.
Market operators said the publication of the fresh list helped investors identify securities eligible for leveraged investment, while the recent sharp correction created attractive entry points for short-term investors.
The Bangladesh Securities and Exchange Commission (BSEC) earlier gazetted the Revised Margin Rules, 2025, introducing several changes aimed at making margin financing more flexible while strengthening regulatory oversight.
Under the revised rules, only ‘A’ and ‘B’ category shares with a P/E ratio up to 40 are eligible for margin loans. The rules also eased the thresholds for margin calls and forced sales.
Market participants have described the revised framework as more market-friendly, particularly after the regulator raised the maximum permissible P/E ratio and retained provisions supportive of margin financing.
The revised margin rules and fresh list of marginable securities appeared more market-friendly and helped ease the uncertainty that had weighed on investor sentiment in recent sessions, said Akramul Alam, head of research at Royal Capital.
“Renewed buying interest in selected sectors helped the benchmark index recover, although persistent domestic and geopolitical uncertainties kept investors cautious,” he added.
The benchmark DSE broad index gained more than 16 points, or 0.28 per cent, to 5,786, recovering part of the roughly 125 points it had lost over the previous six sessions.
The market opened higher and maintained its positive momentum throughout the session as investors showed renewed interest in fundamentally strong and recently corrected stocks.
According to EBL Securities, the market got a much-needed breather after six consecutive sessions of correction as buying activity regained traction following the finalisation of the amended margin rules, although broader investor sentiment remained cautious.
A leading stockbroker, requesting not to be named, said the publication of the marginable stock list could provide further support in the near term if margin financing activities increased among brokerage houses and merchant banks.
However, he cautioned that the revised rules alone may not be enough to sustain a prolonged rally unless investor confidence improves and market participation broadens.
“The next few sessions will be crucial in determining whether Thursday’s rebound marks the beginning of a sustained recovery or is merely a technical bounce following the recent correction,” he added.
The rebound also raised concerns, as four low-performing stocks featured among the top 10 gainers, causing fears of speculative trading and possible market manipulation.
Shyampur Sugar Mills, Zeal Bangla Sugar Mills, Yeakin Polymer and Al-Arafah Islami Bank gained between 5.20 per cent and 8.74 per cent on Thursday, despite their weak fundamentals and limited investor appeal.
The unusual gains in such stocks prompted market participants to question whether the broader recovery was being accompanied by speculative activity, particularly as investors sought quick returns following the recent market correction.
Trading activity remained subdued, with turnover falling below the Tk 7-billion mark after three months to Tk 6.72 billion, declining 8.3 per cent from the previous session.
Market breadth was positive, with 192 issues advancing against 127 declining, while 71 remained unchanged on the DSE.
Sharp Industries was the most-traded stock, with shares worth Tk 200 million changing hands.
The Chittagong Stock Exchange (CSE), however, edged lower. Its All Share Price Index (CASPI) fell 3 points to 15,491, while the Selective Categories Index (CSCX) lost 14 points to 9,430.
