Stocks bounced back in the gaining streak Monday, snapping a nine-day losing streak, as bargain hunters put fresh bets on lucrative issues after recent price erosion.
The market saw a steep fall at opening and the key index plunged below the 6,000-mark, losing 68 points, within the first hour of trading. However, the index recovered gradually supported by the institutional investors.
At the end of the session, DSEX, the key index of the Dhaka Stock Exchange (DSE), went up by 30.45 points or 0.50 per cent to settle at 6,083, after losing over 314 points in the past nine trading days.
Turnover, the crucial indicator of the market, jumped to Tk 6.40 billion on the country's premier bourse, soaring 36 per cent over previous day's mark of Tk 4.71 billion.
Market analysts said stocks rebounded with high turnover as institutional investors became active and put money cautiously on lucrative issues after the recent market erosion.
Institutional investors, including the state-run Investment Corporation of Bangladesh, supported the market from the front, said a merchant banker.
Capital Market Stabilisation Fund (CMSF) has provided another amount of Tk 250 million to ICB to support the ailing stock market and the ICB injected the funds to the market on Monday, said an ICB official.
The ICB has so far received a total of Tk 2.25 billion from the CMSF to enhance liquidity support for the stock market.
Most of the stocks saw price erosion of about 15 to 40 per cent and became lucrative after continuous nine days fall, which attracted the investors, he said.
"The bargain hunters took the opportunity of buying stocks at lucrative prices after the recent market erosion," he said.
The bargain hunters showed their buying interest on sector-specific stocks at lucrative price as the market lost 315 points during the last nine days, said International Leasing Securities
"The stocks witnessed a downward trend in the morning session that recovered soon as the institutional investors came up to support the market," said the stockbroker.
Meanwhile, the Bangladesh Bank will hold a meeting today (Tuesday) regarding the banks' capital market exposure issues.
"The investors are expecting positive decisions from the regulator in this regard and increased participation that is reflected in the higher turnover," said the stockbroker.
Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) is trying to boost investors' confidence and increase fund flow in the capital market.
The stock market regulator held a meeting with some 30 high net-worth individual investors Monday chaired by Dr. Shaikh Shamsuddin Ahmed, a commissioner of the BSEC.
"They (high net-worth individuals) are assured to support in revamping the capital market," said Mohammad Rezaul Karim, a BSEC executive director and spokesperson.
The securities regulator will gradually sit with merchant bankers, stock brokers, banks, listed companies to encourage them to play a proactive role in revamping the market, he said.
"The securities regulator wants to restore investors' confidence ensuring rational behaviour of institutional investors," he said.
The investors' activities were mostly focused on the textile sector, capturing 23 per cent of the day's total turnover.
The investors favored bargain hunting which helped the index to end in positive territory at the end of the session, said EBL Securities.
However, the general investors are still concerned about the current macroeconomic issues, including the energy crisis, inflationary pressure, currency depreciation and depletion in foreign reserve, said the stockbroker.
Of the 380 issues traded, 196 advanced, 131 declined and 53 remained unchanged on the DSE trading floor.
Two other indices also closed higher. The DS30 index, comprising blue chips, rose 9.04 points to finish at 2,177 and the DSE Shariah Index (DSES) advanced 3.96 points to close at 1,332.
The Chittagong Stock Exchange (CSE) also rebounded with the CSE All Share Price Index - CASPI -rising 115 points to settle at 17,923 and the Selective Categories Index - CSCX -soaring 69 points to close at 10,737.
Of the issues traded, 129 declined, 111 advanced and 36 issues remained unchanged on the CSE.
© 2024 - All Rights with The Financial Express
