Stocks rebound after two days slump

The market bounced back on Tuesday, snapping a two-day big fall, as bargain hunters put fresh bets on lucrative stocks. However, turnover dropped to a fresh six months low to Tk 10.07 billion as many investors remained on the sidelines.

Following the previous two days’ sharp decline, the market started on a positive note which continued till the closure amid modest volatility in the first hour of trading.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), soared 68.44 points or 1.0 per cent to settle at 6,868, after losing 107 points in the past two consecutive days.

Two other indices also closed higher with the DS30 index, comprising blue chips, jumped 32.34 points to finish at 2,616 and the DSE Shariah Index rose 17.37 points to close at 1,454.

Turnover, a crucial indicator of the market, dropped to a fresh six months low and amounted to Tk 10.07 billion on the country’s premier bourse, in a further decline by 6.32 per cent over the previous day’s tally of Tk 10.75 billion.

It was the lowest single-day transaction since April 29 this year, when turnover was recorded at Tk 9.40 billion.

Market operators said stocks rebounded as bargain hunters went on late hours buying spree on major sector stocks which saw sharp correction in the recent market fall.

Gainers took a strong lead over the losers, as out of 376 issues traded, 223 ended higher and 99 lower while 54 remained unchanged on the DSE trading floor.

A total number of 157,384 trades were executed in the day’s trading session with a trading volume of 217.89 million shares and mutual fund units.

The market capitalisation of the DSE also rose to Tk 5,491 billion on Tuesday, up from the previous day’s mark of Tk 5,454 billion.

Beximco - the flagship company of Beximco Group- topped the turnover chart with shares worth Tk 976 million changing hands, followed by Orion Pharma (Tk 596 million), LafargeHolcim (Tk 592 million), BeximcoPharma (Tk 378 million) and Square Pharma (Tk 373 million).

National Housing Finance & Investment was the day’s best performer, posting a gain of 9.92 per cent while Aziz Pipes was the worst loser, losing 7.88 per cent following the news of its factory shut down.

The Chittagong Stock Exchange also bounced back with its All Shares Price Index (CASPI)—rising 229 points to close at 20,097 while the Selective Categories Index – CSCX -- advancing 139 points to close at 12,075.

Of the issues traded, 155 advanced, 85 declined and 26 issues remained unchanged on the CSE.

The port city bourse traded 8.06 million shares and mutual fund units with turnover value of Tk 237 million.