Bangladesh
6 days ago

Stocks rebound after falling for four days

DSEX clamps 147-pts riding on regulator efforts 

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Stocks witnessed yet another upbeat session on Wednesday, with the key index exceeding 5,100 points, as buoyant investors continued their buying spree on lucrative shares.

The market rally was largely supported by fundamentally-strong stocks riding on the news that Finance Adviser Salehuddin Ahmed is going to hold a meeting with the Bangladesh Securities and Exchange Commission (BSEC) this afternoon.

The finance adviser is likely to discuss providing policy support to restore investors’ confidence in the stock market.

Moreover, regulatory efforts to rebound investors’ market sentiment by forming a committee to investigate the reasons behind the recent downtrend also boosted investors’ confidence to some extent.

The market indices remained elevated right from the start of day’s session as buyers remained predominant across the trading floor, causing most of the stocks to witness price appreciation.

Due to strong buying pressure, almost 100 stocks halted in the upper limit circuit breaker during the trading hours.

Substantial price surge of large-cap stocks, including blue chips, helped the benchmark index of the Dhaka Stock Exchange (DSE) gain more than 147 points or 2.94 per cent to 5,164.

The DSEX recovered 266 points in the past two days after losing 343 points in the previous four trading days.

The blue-chip index DS30, a group of 30 prominent companies, also surged more than 57 points to 1,915 while the DSES index, which represents Shariah-based companies, rose 22 points to 1,136.

Market analysts said spontaneous participation backed by hopes and excitement drove up the index. More and more investors took positions in blue chip stocks in anticipation of short-term gain.

“Investors’ confidence has got a boost as they hope for a vibrant capital market in near future,” said a leading broker.

However, concerns remain regarding the sustainability of this momentum due to lack of any strong positive catalyst to shift the investor market sentiment towards positivity.

Turnover climbed 50 per cent to Tk 5.19 billion from the day before, as investors poured funds in large-cap stocks in anticipation of short-term gains.

All the large-cap sectors posted positive performance, while 373 stocks saw price appreciation, 15 declined and 9 remained unchanged.

The Chittagong Stock Exchange also ended sharply higher, with its All Shares Price Index (CASPI) soaring 330 points to 14,347, while the Selective Categories Index (CSCX) jumped 193 points to 8,720.

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