Stocks rebounds as bargain hunters return

Stocks on Tuesday rebounded as investors resumed buying activities, taking advantage of lower stock prices after two consecutive sessions of profit-taking, while renewed government assurances regarding the long-term development of the stock market further boosted investor confidence.

The benchmark DSEX index of the Dhaka Stock Exchange rose by 51.1 points to close at 5,605 points, up from 5,554 points in the previous session, according BSS report.

Market analysts said that although trading opened under continued selling pressure, sentiment improved gradually throughout the session as bargain hunters accumulated fundamentally strong stocks, resulting in broad-based gains across most sectors.

Despite the recovery in prices, total turnover on the DSE declined by 5.4 percent to Tk830crore from Tk880 crore recorded in the previous trading session.

Among sectors, pharmaceutical stocks accounted for the highest share of turnover at 16.1 percent, followed by banking stocks at 12.3 percent and engineering issues at 11.2 percent.

Most sectors ended the day in positive territory. The travel and leisure sector posted the highest gain of 4.5 percent, followed by general insurance with 3.8 percent and financial institutions with 3.4 percent. In contrast, the miscellaneous sector was the lone major loser, declining by 2.0 percent.

The upbeat market performance also reflected positive investor sentiment following the Finance Minister’s recent reaffirmation of the government’s commitment to strengthening and developing the capital market over the long term.

Meanwhile, trading at the Chittagong Stock Exchange also ended higher. The Selective Categories Index (CSCX) advanced by 4.6 points, while the All Share Price Index (CASPI) gained 36.0 points at the close of trading.