Stocks rebound as investors show increased appetite in blue chips

Stocks rebounded strongly on Thursday, after a sharp decline the day before, as investors showed buying appetite in selective blue chip shares in anticipation of a turnaround.
The market recovery was mostly supported by price appreciation of blue chip stocks as bargain hunters took control to seize opportunities of quick profits following the recent downtrend, market experts said.
Institutional support, particularly of the state-run Investment Corporation of Bangladesh, also played a crucial role in the market recovery.
The benchmark index of the Dhaka Stock Exchange (DSE) went up almost 63 points or 1.17 per cent to 5,414, after suffering a decline by 134 points in the previous three trading days.
Substantial price hikes of selective large stocks, such as Beximco Pharma, BAT Bangladesh, Renata, Square Pharma, Grameenphone, and Robi helped the market make a turnaround. These six stocks jointly accounted for one-third rise of the key index on Thursday.
Beximco Pharma, which gained 3.5 per cent, accounted for 5.6-point rise of the index, while BAT Bangladesh contributed 4.5 points to the index appreciation, having surged 2.1 per cent on the prime bourse.
Square Pharma, the second largest listed firm in terms of market cap, saw a 0.60 per cent price hike, contributing to 3.2-point rise of the key index alone.
Accordingly, the blue chip index DS30, a group of 30 prominent companies, rose 24 points to 1,932 while the DSES Index, which represents Shariah-based companies, gained 14 points to 1,183.
"Most of the stocks witnessed price appreciation, with bargain hunters taking control to seize quick-gain opportunities," said EBL Securities.
Stocks rebounded with increased market participation across the trading floor strengthening market's recovery.
The market turnover climbed 212 per cent to Tk 4.97 billion from the 18-month low turnover the day before, despite shortened trading hours.
The pharmaceuticals sector kept its dominance in the turnover chart, accounting for more than 25 per cent of the day's turnover, followed by food and engineering sectors.
However, the overall market sentiment still remains subdued as cautious investors still keep away from taking positions in equities amidst uncertainties regarding the market's outlook, said EBL Securities.
Most of the traded issues saw price appreciation. Out of the 392 issues traded, 286 closed higher, 66 ended lower and 40 remained unchanged on the DSE trading floor.
All the large-cap sectors showed positive performance. Telecommunication posted the highest gain of 2.48 per cent, followed by food 1.61 per cent, pharmaceutical 1.39 per cent, non-bank financial intuitions 1.31 per cent and banking 1.04 per cent.
Square Pharma became the most-traded stocks with shares worth Tk 351 million changing hands, followed by Orion Infusion, Lovello Ice-Cream, Agni Systems, and Sea Pearl Beach Resorts.
Techno Drug was the top gainer, rising 9.87 per cent while Rangpur Foundry was the worst loser, losing 2.9 per cent.
The Chittagong Stock Exchange (CSE) also rebounded with its All Share Price Index (CASPI) rising 56 points to 15,415 and the Selective Categories Index (CSCX) gaining 41 points to 9,285.

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