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Stocks post modest rise after two-day slump

Majority of stocks remain stuck at floor prices

FE REPORT | October 26, 2022 00:00:00

Stocks posted a moderate rise on Tuesday, after a two-day slump, as the bargain hunters showed their buying interest on selective issues.

Following the previous day's reduced trading time due to a technical glitch, the market opened on a positive note, adding almost 50 points in the first half of the session, but the latter half eroded most of the initial gains amid selling pressure.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), finally settled at 6,328, gaining 20.24 points or 0.32 per cent, after losing 85 points in the past two days.

Turnover, however, rose to Tk 6.23 billion on the DSE, an 86 per cent rise over the previous day's reduced trading hours' turnover of Tk 3.34 billion.

Only 1:43 hours trading took place on Monday due to a technical glitch, instead of regular 4:20 hours.

The investors are taking a cautious stance since the market has been concentrated on selective issues while a majority of stocks are stuck at the floor price without potential buyers, said a leading broker.

Almost 250 stocks remained unchanged due to the 'floor price' limitation. Of the 355 issues traded, 86 advanced, 21 declined and 248 remained unchanged on the DSE trading floor.

The bargain hunters took positions on lucrative sector-specific stocks, taking advantage of the recent corrections in the market, said EBL Securities, in its regular market analysis.

Following the possibility that the issue related to buying stocks before cheque encashment would be resolved soon, investors opted to take positions on selective stocks, said the stockbroker.

Many investors, however, remained concerned regarding the market outlook due to the macroeconomic adversities, as well as the majority of scrips being stuck at the floor price, said the stockbroker.

The miscellaneous sector dominated the turnover chart, grabbing 18 per cent of the day's total turnover, followed by pharmaceuticals (17 per cent) and engineering (15 per cent).

Beximco became the most-traded stock with shares of Tk 794 million changing hands, followed by Anwar Galvanizing, Orion Pharma, Intraco Refuelling Stations and Eastern Housing.

Tamijuddin Textile was the top gainer, gaining 9.99 per cent while Apex Footwear was the worst loser, losing 6.91 per cent.

The Chittagong Stock Exchange (CSE) also advanced marginally with the CSE All Share Price Index (CASPI) rising 20 points to settle at 18,653 and its Selective Categories Index (CSCX) shedding nearly 12 points to close at 11,179.

Of the issues traded, 50 advanced, 30 declined and 128 issues remained unchanged.

The port-city bourse traded 3.61 million shares and mutual fund units with a turnover value of Tk 207 million.

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