Dhaka stocks bounce back strongly

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FE Report
Dhaka Stocks bounced back strongly Wednesday after overcoming the recent drought in trading, thanks to rise in prices of banks and Grameenphone shares.
The benchmark DSE General Index (DGEN) gained a staggering 119.27 points or 2.21 per cent to 5519.66 after the bourses main index shed 86.03 points Tuesday.
The broader DSE All Shares Price Index (DSI) was up by 94.57 points or 2.13 per cent to close at 4522.98. The DSE 20 blue chip index also added 32.52 points or 1.10 per cent to 2982.67.
Total turnover was however 0.78 per cent down from the previous day to reach Tk. 6.25 billion, lowest in three months.
Most of the issues including banks and mutual funds went up. Out of 241 issues traded, 170 gained, 65 closed in negative and six remained unchanged.
Banks - the bellwether of the market and GP helped the market fight the bearish trend.
Mercantile Bank led the sector with highest 6.71 per cent gain, followed by Dutch Bangla Bank and AB Bank, which were up by 6.10 and 2.81 per cent respectively.
Shares of Grameenphone alone were up by 4.59 per cent, reaching 339.40 at the end of the session.
Analysts said the markets were up as investors grabbed shares with good fundamental. They however wondered whether Wednesday's rise would be sustainable.
"The stabilisation of the market will not be sustainable if the share supply is not increased," Waqar A Choudhury, Managing Director and Chief Executive Officer of Green Delta Finance Service Ltd, told the FE.
"The Securities and Exchange Commission (SEC) should revise the loan criteria to bring the investors' confidence in mutual funds," he said.