Stocks rebound, turnover falls below Tk3 billion
Business Report :
Stocks bounced back on Thursday, snapping a three-day big fall, as bargain hunters showed buying interest in lucrative shares riding on the news of the regulator-shareholders meeting.
As the market saw free-fall for the past three days, the Bangladesh Securities and Exchange Commission sat with the executives of top brokerage firms and merchant bankers today to discuss how to support the market.
Also, HSBC Holdings Plc said Bangladesh stocks have potential like India, Vietnam as rising consumption and foreign investments boost the outlook for corporate earnings.
Following the news, the investors went on buying shares which traded at lucrative price levels.
DSEX, the benchmark index of the Dhaka Stock Exchange, went up by 34 points to 6,254, after losing 77 points in the past three days.
The DS30 Index, which comprises blue-chip companies, also recovered 13 points to 2,121 while the DSES index, which represents Shariah-based companies, soared 7 points to 1,358.
Stocks clutched the free fall, with the majority of stocks rebounding from their prolonged losing streak as some opportunist investors came up to take positions on low-priced issues owing to positive expectations from the regulator’s meeting with the stock market stakeholders, said EBL Securities.
The upbeat trend in the market persisted till the closure as bargain hunters dominated the market since most of the stocks observed price erosion in the past few trading sessions, said the stockbroker.
However, the majority of investors remained reluctant and preferred to sit on cash owing to concerns regarding the waning momentum of the market.
Turnover, a crucial indicator of the market, however, fell below Tk 3 billion mark and amounted to Tk 2.99 billion, slumping further by 15 per cent from the previous day.
Most of the traded stocks saw price appreciation, as out of 321 issues traded, 153 witnessed price rise, 8 closed lower and 160 issues remained unchanged on the DSE trading floor.
Small-cap Fu-Wang Food was the most-traded stock with shares worth Tk 276 million changing hands, followed by BSC, Sea Pearl Beach Resorts, Simtex Industries and Khan Brother PP Woven Bag Industries.
Olympic Accessories was the day’s top gainer, registering an increase of 9.61 per cent while National Tea was the worst loser, losing 2.85 per cent.
The Chittagong Stock Exchange (CSE) also closed higher, with the CSE All Share Price Index (CASPI) rising 42 points to settle at 18,478 and the Selective Categories Index (CSCX) gaining 25 points to close at 11,046.
