Stocks rebound in gaining streak after single-day break

Stocks rebounded in the gaining streak on Wednesday, after a single-day break, as bargain hunters showed their buying binge on sector-wise issues amid positive expectation.

DSEX, the key index of the Dhaka Stock Exchange, went up by 20.08 points or 0.39 per cent to settle at 5,069, after losing 3.69 points in the previous day.

Two other indices also ended higher. The DS30 index, comprising blue chips, advanced 6.87 points to finish at 1,767 and the DSE Shariah Index gained 5.19 points to close at 1,163.

Market operators said bargain hunters showed their buying appetite on sector-specific issues amid growing confidence riding on regulatory moves and gradual improvement of economic activities.

The investors showed buying appetite riding on some of the positive macro-economic indicators despite Covid-19 pandemic.

The stock market regulator’s moves to restructure the boards of the listed companies which sponsor-directors fail to hold minimum 30 per cent shares jointly, also attracted the investors, said a merchant banker.

He noted that the regulatory measures were crucial for the rise in the confidence of the stock investors, which geared up the index and turnover.

He said expected arrival of an effective vaccine and sign of returning to normalcy by early next year, investors believe the stock market is likely to retain strength with economic recovery.

Top positive index contributors of the market were Walton, Beximco, LafargeHolcim, Beximco Pharma and Trust Bank—jointly accounted for nearly 17 points rise to the DSEX, according to data of amarstock.com, a stock market data analyst.

Turnover, a crucial indicator of the market, stood at Tk 8.25 billion, which was nearly 15 per cent higher than the previous day’s turnover of Tk 7.19 billion.

Gainers took a modest lead over the losers as out of 355 issues traded, 147 ended higher, 119 lower and 89 issues remained unchanged on the DSE trading floor.

A total number of 165,408 trades were executed in the day’s trading session with a trading volume of 323.09 million shares and mutual fund units.

The market capitalisation of DSE rose to Tk 4,062 billion on Wednesday, from Tk 4048 billion in the previous day.

Beximco Pharma dominated the turnover chart with 4.20 million shares worth Tk 594 million changing hands, closely followed by Beximco, Rupali Insurance, IFIC Bank and Republic Insurance.

Saif Powertec was the day’s best performer, posting a gain of 10 per cent while Power Grid Company of Bangladesh was the worst loser, losing 3.79 per cent.

The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI)—gaining 58 points to close at 14,531 while the Selective Categories Index – CSCX advancing 32 points to close at 8,746.

Of the issues traded, 132 advanced, 88 declined and 51 remained unchanged on the CSE.

The port city bourse traded 14.86 million shares and mutual fund units with turnover value of Tk 314 million.

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