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Stocks snap three-day losing streak ---

Over 200 stocks remain unchanged at prime bourse


FE REPORT | April 13, 2023 00:00:00


Snapping a three-day losing streak, the benchmark index of the Dhaka bourse posted a moderate gain on Wednesday, as bargain hunters showed interest in some oversold stocks in anticipation of quick gains.

The market managed to close in the green as the investors deemed some selective small-cap stocks lucrative following the recent price erosion, market operators said.

The market opened on an upbeat note that accelerated gradually, ultimately ending more than 8 points higher.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled at 6,203, with a rise of 8.39 points, after losing 18 points in the past three days.

The upward shift in the index is mainly driven by the price surge in selective small-cap stocks, particularly IT, travel and leisure, and jute sectors.

The small-cap IT sector gained 2.2 per cent as all the IT companies' shares soared with three featured in the top gainers' list.

The investors were also mainly active in the IT sector as the sector grabbed 17 per cent of the day's total transactions.

Pre-Eid sale pressure might be over as only four trading days are left before the Eid holidays, said a stockbroker.

But the market turnover is drying up in absence of potential buyers while the large-cap stocks that dominated the market turnover chart earlier, remained at the floor price trap, he said.

As a result, the daily turnover dropped further to Tk 4.11 billion, 7 per cent lower than the previous day.

"The market remained upbeat throughout the session owing to the buy dominance from bargain hunters who perceived some selective issues to be traded at a lucrative price level," said EBL Securities.

Investors have been shifting their focus toward short-term trading, creating continuous volatility on the trading floor, it said.

According to International Leasing Securities, stocks rebounded from their losing streak as investors have found some selective issues lucrative with quick gain potential after recent corrections.

A handful of stocks were active on the trading floor in the last few months since the securities regulator imposed a price floor to all securities on July 28 last year.

The floor price mechanism prevents investors' capital erosion in the short run but barely relieves retail investors' suffering as large-cap stocks are stuck on the floor.

Buyers had been concentrated on selective issues while the majority of stocks remained stuck at the 'floor price' level. Of 310 issues traded, 201 remained unchanged, 75 advanced and 34 declined on the DSE floor.

Aamra Networks became the day's turnover leader, with shares worth Tk 271 million changing hands, followed by Eastern Housing (Tk 247 million), Gemini Sea Foods (Tk 204 million), Genex Infosys (Tk 176 million) and Bangladesh Shipping Corporation (Tk 166 million).

Prime Life Insurance was the week's top gainer, posting a 9.88 per cent rise while the newly listed Midland Bank was the top loser, shedding 4.35 per cent after soaring 35 per cent in the past six days.

Two other indices of the DSE closed in the green. The DS30 Index, which consists of blue-chip companies, saw a fractional gain of 0.48 points to 2,199 and the DSES Index, which represents Shariah-based companies, rose 3 points to 1,345.

The Chittagong Stock Exchange (CSE) also ended slightly higher with its All Share Price Index (CASPI) rising 23 points to settle at 18,302 and the Selective Categories Index (CSCX) gaining 13 points to 10,970.

The port city's bourse traded 1.54 million shares and mutual fund units with a turnover value of nearly Tk 72 million.

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