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Stocks rebounce after two-day slump

DSE daily turnover dips to fresh six-month low


FE REPORT | November 10, 2021 00:00:00


The market bounced back on Tuesday, snapping a two-day big fall, as bargain hunters put fresh bets on sector-wise lucrative stocks.

However, turnover dropped to a fresh six months low to Tk 10.07 billion as many investors remained on the sidelines.

Following the previous two days' sharp decline, the market started on positive note which continued till the closure amid modest volatility in the first hour of trading.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), soared 68.44 points or 1.0 per cent to settle at 6,868, after losing 107 points in the past two consecutive days.

Two other indices also ended higher with the DS30 index, comprising blue chips, jumped 32.34 points to finish at 2,616 and the DSE Shariah Index rose 17.37 points to close at 1,454.

Turnover, a crucial indicator of the market, dropped to Tk 10.07 billion on the country's premier bourse, in a further decline by 6.32 per cent over the previous day's tally of Tk 10.75 billion.

It was the lowest single-day transaction since April 29 this year, when turnover was recorded at Tk 9.40 billion.

Market operators said stocks rebounded as bargain hunters showed their buying spree on major sector stocks which saw sharp correction in the recent market fall.

A section of investors went for buying shares ignoring the concern over Bangladesh Bank's moves against a number of banks against their over investments in stock market, they said.

The opportunist investors' buoyancy in the major sector stocks helped the benchmark index to cross 6,800-mark again, according to a merchant banker.

He noted that stocks rebounded driven by all the major sectors, including the cement, financial institutions, power, textile and engineering.

"As many stocks prices fell by 5.0 per cent to 12 per cent in the recent price erosions, optimistic investors showed buying appetite on lucrative stocks," he added.

Top index movers were LafargeHolcim, Square Pharma, Investment Corporation of Bangladesh, United Power and Beximco Pharma, jointly contributing 26 points rise of the DSEX.

Major sectors gained with cement generated the highest gain of 5.40 per cent led by LafargeHolcim, followed by financial institutions 2.70 per cent, textile 1.30 per cent, power 1.20 per cent, engineering 0.90 per cent and telecom 0.10 per cent.

The Chittagong Stock Exchange also rebounded with its All Shares Price Index (CASPI)-rising 229 points to close at 20,097 while the Selective Categories Index - CSCX -- advancing 139 points to close at 12,075.

Of the issues traded, 155 advanced, 85 declined and 26 issues remained unchanged on the CSE.

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