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Stocks rebound, GP gains after three-day plunge

FE REPORT | July 06, 2022 00:00:00

Stocks returned to the gaining streak on Tuesday, snapping a two-day losing streak on bargain hunting, as pre-Eid sale pressure eased to some extent.

Only two trading days are left before Eid holidays as the market will remain closed from Friday to Monday, including weekly holidays, on the occasion of Eid-ul-Azha, the second largest religious festival of the Muslims.

The market opened on a positive note and the key index jumped 56 points within the first hour of trading. But, the rest of the session wiped out more than half of the early gain, ultimately ending over 25 points up.

DSEX, the key index of the Dhaka Stock Exchange (DSE), went up by 25.25 points or 0.39 per cent to settle at 6,372, after losing over 30 points in the past two days.

Turnover, the crucial indicator of the market, also jumped to Tk 9.61 billion, which was 45 per cent higher than the previous day's tally of Tk 6.62 billion.

Market insiders said the optimistic investors preferred to buy large-cap stocks at lucrative prices on bargain hunting as the pre-Eid sale pressure eased to some extent.

However, the confidence of investors is yet to restore fully due to macroeconomic worries and rising Covid-19 cases in recent days, they said.

"Some of the big-cap stocks were on the investors' concentration considering the fundamental aspects," said International Leasing Securities.

The market witnessed a buying spree since the opening that helped to achieve 45 per cent higher turnover compared to the previous session, said the stockbroker.

EBL Securities said stocks bounced back into the positive terrain as bargain hunter investors took advantage of low-priced shares created by a period of corrections observed in the past few sessions.

"Despite the market managing to settle in the green zone, volatility on the trading floor prevails as investors' concerns loom around rising Covid-19 infections and weak macroeconomic cues in the country," said the stockbroker.

Meanwhile, Grameenphone (GP), the largest market-cap listed company's share price surged by 3.01 per cent on Tuesday after losing around 6.0 per cent in the past three days.

GP shares price plunged in the past three days as the telecom regulator banned it from selling new SIMs due to failure to provide quality service.

Two other indices also ended higher. The DS30 Index, which consists of the blue-chip companies, rose 17.96 points to close at 2,301 and the DSES Index, which represents Shariah-based listed firms, gained 4.08 points to finish at 1,389.

Major sectors showed mixed performances. Telecom posted the highest gain of 2.50 per cent, followed by power with 0.70 per cent and engineering 0.30 per cent.

On the other hand, general insurance, banking and food sectors lost 0.40 per cent, 0.30 per cent and 0.10 per cent respectively.

Gainers and losers almost the same as out of 382 issues traded, 160 closed higher and 159 ended lower while 63 remained unchanged on the DSE trading floor.

Beximco was the most-traded stock with shares worth Tk 950 million changing hands, followed by Robi Axiata (Tk 563 million), Titas Gas (Tk 447 million), Fu-Wang Food (Tk 292 million) and Grameenphone (Tk 288 million).

The Chittagong Stock Exchange (CSE) also ended marginally higher with the CSE All Share Price Index - CASPI -gaining nearly 77 points to settle at 18,770 and the Selective Categories Index - CSCX -rising around 46 points to close at 11,250.

Of the issues traded, 133 advanced, 126 declined and 42 issues remained unchanged on the CSE.

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