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Stocks rebound as cheque issue resolved

Low-cap IT sector grabs highest 18pc turnover

FE REPORT | November 02, 2022 00:00:00

Stocks rebounded on Tuesday, snapping a two-day losing streak, as the securities regulator allowed investors to purchase shares before cheque encashment.

Recently, the Bangladesh Securities and Exchange Commission (BSEC) asked stockbrokers not to purchase shares against bank cheques before encashment which put a negative impact on the market.

Following the stockbrokers demand, the securities on Tuesday again allowed the purchase of shares against bank cheques before encashment which enhanced market participation, market insiders said.

Following the news, the market opened on a flying note and the upbeat trend continued till the end as cheerful investors put fresh bets on sector specific issues riding on the June-end dividend declaration.

DSEX, the benchmark of the Dhaka Stock Exchange (DSE), went up by 45.56 points or 0.72 per cent to settle at 6,353, after losing 70 points in the past two trading days.

Two other indices also ended higher. The DS30 index, comprising blue chips, rose 9.06 points to finish at 2,235 and the DSE Shariah Index (DSES) gained 12.26 points to close at 1,389.

Turnover, another important indicator of the market, stood at Tk 9.02 billion on the country's premier bourse, which was 17 per cent higher than the previous day's tally of Tk 9.02 billion.

Stocks returned to green after witnessing corrections in the first two sessions of the week as investors aimed their buying spree on major issues, which they perceived as an opportunity to harness quick gains amidst the ailing market momentum, said EBL Securities.

The market started on a positive note and maintained the uptrend throughout the session as investors across the bourse continued to inject funds into equities in their attempt to join the upward rally, it said.

However, investors are still concerned regarding the apprehension of a bleak economic outlook that prompted the gloomy earnings forecasts of the listed companies, the stockbroker added.

Most of the traded issues, however, remained unchanged due to the 'floor price' restriction. Of the 359 issues traded, 116 advanced, 11 declined and 232 others remained unchanged on the DSE trading floor.

Low-cap IT sector dominated the turnover chart, grabbing 18 per cent of the day's total turnover, followed by pharma (16 per cent) and paper & printing (11 per cent).

Genex Infosys topped the turnover list with shares worth Tk 461 million changing hands, followed by Navana Pharma (Tk 383 million), Orion Pharma (Tk370 million), Eastern Housing (Tk 358 million), and Bashundhara Paper Mills (Tk 350 million).

Aamra Technologies was the top gainer, posting a 9.98 per cent gain while Sinobangla Industries was the worst loser, losing 1.77 per cent.

The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index - CASPI -gaining 110 points to settle at 18,733 and the Selective Categories Index - CSCX - rising 67 points to close at 11,227.

Of the issues traded, 82 advanced, 12 declined and 160 remained unchanged on the CSE trading floor.

The port city's bourse traded 4.85 million shares and mutual fund units with turnover value of nearly Tk 409 million.

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