Prime index 1.5-month high on increased bets on beaten-down stocks

FE REPORT
Stocks ended higher for the second consecutive day on Wednesday, with the prime index of the Dhaka Stock Exchange (DSEX) rising to one-and-a-half-month high, supported by a handful of stocks.
Market experts said optimistic investors put fresh bets on lucrative shares, which had recently endured major correction, in anticipation of quick gains.
The market witnessed volatility until mid session. Buyers took control in the latter part of the day when buoyant investors opted to take positions in lucrative shares.
DSEX, the benchmark index of the Dhaka Stock Exchange, finally went up by almost 34 points or 0.63 per cent to 5,374. With that, the prime index recovered 45 points in the past two trading days.
Substantial price hikes of certain stocks, including Beximco Pharma, Khan Brothers PP Woven Bag Industries, Square Pharma, IFIC Bank, and Navana Pharma, helped the market to stay in the green zone.
These five stocks accounted for a 13-point rise of the index on Wednesday, as buyers kept their dominance, driven by positive expectations, according to EBL Securities.
Beximco Pharma's stock climbed 2.2 per cent, contributing almost 4 points to the index rise, while Square Pharma went up 0.4 per cent on the bourse, helping another 3-point rise of the index.
"Stock showed signs of recovery as buyers continued their dominance across the trading floor owing to a slight rebound in investor sentiment," said EBL Securities.
Investors preferred to take positions in certain stocks that had become extremely cheap due to sharp corrections, it added.
The DS30 index, a group of 30 prominent companies, rose more than 8 points to 1,912, while the DSES index, which represents Shariah-based companies, advanced 9 points to 1,186.
Most sectors posted positive performance. The jute sector saw the highest gain of 5 per cent, as the sector leader Sonali Aansh Industries witnessed more than 6 per cent gain alone. Sonali Aansh was followed by paper, non-bank financial institutions, cement, tannery and IT sectors while telecom experienced the highest correction of 1.6 per cent.
Turnover, which indicates the volume of shares traded, stood at Tk 5.39 billion, 22 per cent up from the day before.
Pharmaceuticals, food and engineering sectors constituted more than 40 per cent of the day's total turnover.
A majority of the stocks saw a price surge. Out of the 395 issues traded, 241 closed higher, 97 ended lower, and 57 remained unchanged on the DSE trading floor.
Low-cap stocks dominated the turnover chart with Beach Hatchery being the most-traded stock with shares worth Tk 162 million changing hands, followed by Unilever Consumer Care, Alif Industries, Orion Infusion, and Sonali Paper & Board Mills.
Low-performing stocks also dominated the gainers' chart as Khan Brothers PP Woven Bag Industries was the top gainer, increasing 10 per cent, while Atlas Bangladesh was the top loser, shedding 3 per cent.
The Chittagong Stock Exchange (CSE) also ended higher with its All Share Price Index (CASPI) gaining 85 points to settle at 15,157 and the Selective Categories Index (CSCX) gaining 53 points to 9,130.
The port city bourse traded 1.99 million shares and mutual fund units with a turnover volume of Tk 55.50 million.
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