Stocks snap seven-day losing streak

The equity benchmark index rebounded on Thursday, snapping a seven-day losing streak, as bargain hunters rushed to buy beaten-down stocks amid renewed optimism.

Analysts said the market witnessed a major correction in the past seven consecutive sessions and many good stocks came down to a lucrative price level.

The market rally was largely supported by fundamentally-strong sector stocks, such as banking, power and pharma which faced major corrections. Buyers remained on the dominant side as investors looked for oversold stocks, which they deemed lucrative at the prevailing price levels.

The market witnessed positive momentum right from the start with renewed buying interest on certain beaten-down stocks.

DSEX, the key index of the Dhaka Stock Exchange (DSE), closed the session around 36 points or 0.67 per cent higher at 5,350. It lost a total of 222 points in the previews seven trading days.

EBL Securities said bargain hunting in selective large-cap stocks revived buying interest to some extent, leading the benchmark index to return to positive territory.

The investors' buying interest in certain June-ending stocks ahead of their upcoming corporate declarations, also contributed to the market's upbeat vibe.

Moreover, improving macroeconomic indicators, easing inflation and declining Treasury yields spurred bargain hunters to take positions in lucrative shares amid expectations for a slight reversal from the market's prolonged bearish sentiment, said the stockbroker.

The blue-chip DS30 index, a group of 30 prominent companies, also gained 17 points to close at 2,074 while the DSES index, which represents Shariah-based companies, rose 7 points to 1,163.

Price hike of selective large-cap stocks from major sectors pulled the market index up. However, shares of low-performing companies continued to surge, signalling potential market manipulation.

Two junk stocks -- Standard Ceramic and Premier Leasing -- featured in the day's top gainers' list. Standard Ceramic was Thursday's top gainer, soaring 9.9 per cent while Premier Leasing stock jumped 7.7 per cent, becoming the fifth highest gainer.

The non-performing stocks are significantly beating their industry peers nowadays that are in regular business operation, posting profits and giving dividends to their shareholders.

Turnover, a crucial indicator of the market, stood at Tk 7.03 billion as against Tk 7.05 billion in the day before.

Investors were mostly active in the banking sector, which accounted for 15 per cent of the day's total turnover, followed by textile (14 per cent) and pharma sector (13 per cent).

Most of the traded stocks saw price hike, as out of 399 issues traded, 168 closed higher and 154 lower while 77 others remained unchanged.

Major sectors saw positive performance. The non-bank financial institutions booked the highest gain of 3.44 per cent, followed by banking sector with 0.96 per cent, pharmaceuticals (0.80 per cent), food (0.53 per cent), power (0.52 per cent) and engineering (0.50 per cent).

Orion Infusions was the most-traded stock with shares worth Tk 378 changing hands, followed by City Bank, Asiatic Laboratories, Bangladesh Spinning Corporation and Rahima Food Corporation.

The Chittagong Stock Exchange (CSE) also returned to the green, with CSE All Share Price Index (CASPI) rising 47 points to settle at 14,973 and its Selective Categories Index (CSCX) gaining 32 points to close at 9,190.

The port-city bourse traded 1.95 million shares and mutual fund units, with a turnover value of Tk 46 million.

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