The key index of Dhaka Stock Exchange rebounded on Tuesday, despite fall in prices of majority of the scrips, as banks regained strength and Grameenphone surged on an expectation of better earnings reports in third quarter.
DSEX advanced by 0.21 per cent, or 12.91 points, to finish at 6,141.81 points on Tuesday after a sharp decline by 76.60 points in the previous session.
In line with the previous session, the market opened with downward vibe as investors remained cautious over the Bangladesh Bank punitive action against seven listed banks, stockbrokers said.
According to the media reports, the central bank fined seven banks on October 5 for their investment in stocks beyond the allowable limit while a number of other banks would also be punished by the BB for the same offence.
However, the market recovered soon after as institutional investors in particular went on share purchasing with an expectation of better earnings in third quarter, they said.
As a result, banks rebounded with 1.62 per cent on an average with holding 48 per cent of the day’s turnover.
Moreover, BRAC Bank was the top positive index mover with the news that a strategic investor may acquire a minority shareholding of bKash, one of its subsidiary company.
The bank surged by 9.8 per cent, leading the highest gainer and turnover chart of the day.
Apart from the bank shares, the share prices of Grameenphone surged by 0.73 per cent as investors expected better profits like the company had gained before that also contributed in recovering the loss.
On the other hand, most of the scrips declined on the day as many investors still remained on share selling with cautiousness and were waiting for the next move of the market.
As a result, the average share prices of energy, non-bank financial institutions and pharmaceuticals declined by 0.8 per cent, 0.7 per cent and 0.6 per cent respectively.
Of the 331 companies and mutual funds traded, 188 declined, 106 advanced, and 37 remained unchanged.
As a result of investors’ careful move, turnover at the bourse declined further to Tk 765.10 crore from that of Tk 967.84 crore in the previous trading session.
‘The index remained negative in the early part of the session displaying price correction but diverted its direction soon after some profit booking period,’ said EBL Securities in its market commentary.
‘Investors’ buying spree continued on stocks from Bank, Telecommunication and Food and Allied sectors,’ it said.
DS30, the blue-chip index of the DSE, however rose 0.33 per cent, or 12.91 points, to close at 2,207.00 points.
Shariah index DSES declined 0.10 per cent, or 1.45 points, to finish at 1,347.79 points.
BRAC Bank led the turnover chart on the day with its shares worth Tk 44.61 crore changing hands.
LankaBangla Finance, EXIM Bank, Uttara Bank, Shahjalal Islami Bank, Islami Bank, IFIC Bank, Aamra Network, National Bank, Al-Arafah Islami Bank and Premier Bank were the other turnover leaders.
BRAC Bank gained the most, adding 9.75 per cent, while ICB AMCL First Agrani Bank Mutual Fund was the worst loser on the day, shedding 6.97 per cent.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Stocks