Stocks rebound after 6-session correction

Stocks on Thursday rebounded after six consecutive sessions of correction as buying interest returned to the market following the finalisation of amended margin rules, although investors remained cautious over the market’s near-term outlook.

The DSEX, the broad index of the Dhaka Stock Exchange (DSE), gained 16.4 points to close at 5,786, compared with 5,770 points in the previous session.

Trading remained volatile throughout the session as buyers and sellers engaged in see-saw trading. However, stronger buying support ultimately helped the market close higher.

Despite the rise in the benchmark index, investor confidence remained subdued, reflected in a sharp decline in turnover. Market turnover fell below Tk 700cr for the first time in three months, dropping 8.3 percent to Tk670cr from Tk 730cr in the previous session.

Textiles dominated the turnover, accounting for 24.7 percent of total transactions, followed by general insurance with 16.6 percent and pharmaceuticals with 10.4 percent.

Most sectors posted gains. General insurance rose 1.9 percent, followed by IT at 1.3 percent and mutual funds at 1.0 percent. In contrast, financial institutions declined 0.9 percent, telecom 0.5 percent and fuel 0.3 percent.

Of the 396 issues traded, 188 advanced, 123 declined and 84 remained unchanged.
The Chittagong Stock Exchange (CSE) also closed higher. Its Selective Categories’ Index (CSCX) gained 14.6 points, while the All Share Price Index (CASPI) advanced 2.7 points.