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Stocks end flat after high volatility -

FE REPORT | October 06, 2021 00:00:00

Stocks ended almost flat on Tuesday, after witnessing high volatility, despite most of the traded issues saw price fall.

The market opened on a positive note, but fell sharply by more than 50 points within the first 30 minutes of trading. However, bargain hunting on selective large-cap stocks saved the market from a big fall.

Finally, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), went up 3.84 points or 0.05 per cent to settle at 7,331, after shedding more than 28 points in the previous day.

The two other indices also edged higher. The DS30 index, comprising blue chips advanced 12.85 points to finish at 2,778. The DSE Shariah Index (DSES) saw a fractional gain of 0.68 point to close at 1,594.

Turnover stood at Tk 23.52 billion on the prime bourse, which was 14.62 per cent lower than the previous day's tally of Tk 27.55 billion.

Market insiders said the market index witnessed high volatility as most of the stocks faced natural correction while few heavyweight stocks helped the index to close green.

LafargeHolcim contributed to the index with most of 10 points rise of DSEX, followed by Investment Corporation of Bangladesh (4.60 points), Grameenphone (2.86 points) and Orion Pharma (2.46 points).

The optimistic investors showed buying appetite on selective large-cap stocks while cautious investors sold sector-wise issues, taking the market in the flat zone, said a merchant banker.

He noted that institutional investors remained active in the market and they were buying selective blue chip stocks that saved the market from a big plunge.

"Overall investors' participation displayed a portfolio restructuring approach ahead of financial disclosures," said EBL Securities, in its regular market analysis.

Meanwhile, Professor Shibli Rubayat Ul Islam, chairman of the Bangladesh Securities and Exchange Commission (BSEC), said there is nothing to be worried about the present position of the stock market.

Bangladesh's stock market is not overvalued because it did not soar as fast as the economy rose over the years, he said on Monday at the launching programmee of the World Investor Week 2021.

Buoyancy in cement, tannery, miscellaneous and financial institution sectors helped the index to close in green despite sell pressure in power, insurance, IT, textile, and telecom and banking sectors.

Among the major sectors, power sector saw the highest correction of 1.10 per cent, followed by food with 0.60 per cent, telecom 0.50 per cent and banking 0.40 per cent.

On the other hand, cement sector generated highest return of 5.60 per cent riding on sector heavyweight LafargteHolcim, followed by financial institutions with 0.70 per cent and pharma 0.20 per cent.

A total number of 320,474 trades were executed in the day's trading session with a trading volume of 485.68 million shares and mutual fund units.

The market-cap of the DSE, however, dropped to Tk 5,815 billion on Tuesday, from Tk 5,820 billion in the previous day.

Losers took a strong lead over the gainers, as out of 376 issues traded, 269 closed lower, 75 higher and 32 remained unchanged on the DSE trading floor.

LafargeHolcim Bangladesh topped the day's turnover chart with shares of Tk 2.14 billion changing hands, closely followed by Orion Pharma (Tk 1.95 billion), Beximco (Tk 1.39 billion), GPH Ispat (Tk 681 million) and LankaBangla Finance (Tk 618 million).

Orion Pharma was the day's best performer, posting a gain of 9.90 per cent while ICB Islamic Bank was the day's worst loser, plunging by 10 per cent.

However, the Chittagong Stock Exchange (CSE), ended marginally lower with the CSE All Share Price Index - CASPI -shedding 39 points to settle at 21,433 and the Selective Categories Index - CSCX -- losing 25 points to close at 12,872.

Of the issues traded, 218 declined, 70 advanced and 30 remained unchanged on the CSE trading floor.

The port-city bourse traded 24.21 million shares and mutual fund units with turnover value of Tk 898 million.

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