FE Today Logo

Stocks claw back after two-day slump

Paramount Insurance worst loser after 'disappointing' corporate declaration


FE REPORT | March 23, 2022 00:00:00


The stock market rebounded strongly on Tuesday, snapping a two-day losing streak, as the bargain hunters put fresh bets on lucrative issues with renewed optimism.

The market opened higher and the upbeat trend sustained till the end of the session led by banking, financial institutions, pharma and telecom sector stocks.

Finally, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 79.88 points or 1.19 per cent to settle at 6,771, after losing nearly 74 points in the past two consecutive sessions.

Two other indices also ended higher with the DSE 30 Index, comprising blue chips, rising 34.77 points to finish at 2,471 and the DSE Shariah Index (DSES) advanced 19.05 points to close at 1,460.

Turnover, a crucial indicator of the market, jumped to Tk 9.57 billion on the country's premier bourse, climbing by 51 per cent over previous day's tally of Tk 6.34 billion.

Market analysts said stocks rebounded strongly with renewed investors' optimism following the news that the merchant bankers proposed to form a special fund to enhance liquidity support in the capital market.

The merchant bankers have urged the securities regulator to form a special fund worth Tk 100 billion to increase liquidity support for the capital market, which prompted investors to buy shares, said a leading broker.

Besides, the optimistic investors were buying shares as many stocks came down to lucrative price levels after recent price erosion, he said.

Beximco Group companies are again leading the market from the front, as Beximco and Beximco Pharma added 8.24 points and 4.43 points to the DSEX respectively on Tuesday.

"The investors got back their confidence considering the merchant bankers proposal of Tk 100 billion special funds for strengthening the capital market and resolving the market liquidity crisis," commented International Leasing Securities.

Price surge of some large-cap stocks such as Beximco, Robi, Square Pharma, Beximco Pharma and LafargeHolcim led the prime index to cross 6,700-mark again.

"Participation on the bourse ascended significantly as investors engaged in a buying spree taking advantage of the previous two days' price corrections," according to EBL Securities.

Major sectors posted gains with the cement generating the highest return of 2.30 per cent, miscellaneous with 2.10 per cent, pharma 1.30 per cent, financial institutions 0.90 per cent, engineering 0.70 per cent, power 0.60 per cent, telecom 0.70 per cent and banking 0.50 per cent.

Gainers took a strong lead over the losers, as out of 377 issues traded, 257 advanced, 73 declined and 47 issues remained unchanged on the DSE trading floor.

Beximco continued to dominate the turnover chart with shares worth about Tk 1.35 billion changing hands, followed by Aamra Technologies (Tk 341 million), VFS Thread Dyeing (Tk 250 million), Sonali Papers (Tk 247 million) and Orion Pharma (Tk 242 million).

Atlas Bangladesh was the day's top gainer, posting a 9.92 per cent gain, while Paramount Insurance was the worst loser, shedding 5.89 per cent, following its 'disappointing' corporate declarations during the trading hours.

The Paramount Insurance recommended 10 per cent cash dividend for the year ended on December 31, 2021. In 2020, the insurer disbursed 20 per cent stock dividend.

The general insurer's earnings per share also plunged by 32.36 per cent to Tk 3.03 for the year ended on December 31, 2021, as against Tk 4.48 in the same period last year.

A total number of 163,148 trades were executed in the day's trading session with a volume of 234.05 million shares and mutual fund units.

The market-cap of DSE also rose to Tk 5,399 billion on Tuesday, up from Tk 5,356 billion in the previous session.

The Chittagong Stock Exchange (CSE) also rebounded with the CSE All Share Price Index - CASPI -soaring 197 points to settle at 19,813 and the Selective Categories Index - CSCX rising 119 points to close at 11,886.

Of the issues traded, 168 advanced, 77 declined and 41 issues remained unchanged on the CSE.

The port-city bourse traded 7.82 million shares and mutual fund units with turnover value of Tk 221 million.

[email protected]


Share if you like