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DSE daily turnover dips below Tk 6.0b-mark

Stocks rebound after three-day slump

FE REPORT | October 14, 2020 00:00:00

Stocks rebounded on Tuesday, snapping a three-day losing streak, as optimistic investors showed their buying appetite on sector-specific issues.

The market index witnessed volatility in the early hours of trading but gained momentum afterward ignited by investors' bargain hunting as many stocks came to lucrative price level after three-day major corrections.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 30.15 points or 0.62 per cent to settle at 4,839, after losing 125 points in the past three sessions.

Market analysts said indices bounced back as bargain hunters showed their buying appetite on sector-wise stocks, particularly on Grameenphone, LafargeHolcim, Olympic Industries, Brac Bank and Square Pharma.

According to EBL Securities, stocks rebounded with reviving spirit as optimistic investors opted for bargain hunting accompanied by some institutional investors.

The market rebounded supported by institutional investors, especially the state-run Investment Corporation of Bangladesh, said an analyst at the leading brokerage firm.

However, turnover hit two and a half months low on the DSE as some investors remained on the sidelines to observe the market movement due to the upcoming earnings declaration and anxiety over the impact of the second wave of Covid-19 on the country's economy.

Turnover, a crucial indicator of the market, came down to Tk 5.90 billion on the country's prime bourse, which was 15 per cent lower than the previous session's turnover of Tk 6.94 billion.

Two other indices also ended higher. The DS30 index, comprising blue chips, gained 11.69 points to finish at 1,649 and the DSE Shariah Index rose 7.50 points to close at 1,103.

The market bounced back riding on telecom, cement, general insurance and banking sectors, commented UCB Capital Management.

Most of the major sectors showed positive movement with cement posted the highest gain of 1.90 per cent, followed by telecom with 0.90 per cent, banking 0.70 per cent, financial institutions 0.70 per cent and food 0.70 per cent.

Engineering sector tumbled 3.60 per cent as the sector's heavyweight Walton Hi-Tech Industries continued to loss. The newly listed Walton's shares plunged 6.35 per cent to close at Tk 767.40 on Tuesday.

Gainers took a strong lead over the losers as out of 356 issues traded, 185 ended higher, 98 closed lower while 73 issues remained unchanged on the DSE trading floor.

A total number of 139,729 trades were executed in the day's trading session with a trading volume of 251.12 million shares and mutual fund units.

The insurance sector continued dominating the turnover chart with Continental Insurance topped the turnover list with shares worth Tk 338 million changing hands, followed by Asia Pacific Insurance, Walton Hi-Tech, Brac Bank and Bangladesh General Insurance Company.

Continental Insurance was also the day's best performer, posting a gain of 9.92 per cent while Walton was the worst loser, losing 6.35 per cent.

The Chittagong Stock Exchange also rebounded with its All Shares Price Index (CASPI)-gaining 90 points to close at 13,837 while the Selective Categories Index - CSCX rising 50 points to close at 8,310.

Of the issues traded, 130 advanced, 88 declined and 46 remained unchanged on the CSE.

The port city bourse traded 9.06 million shares and mutual fund units with turnover value of more than Tk 222 million.

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