Stocks rebound on bargain hunting

Staff Correspondent | Published: 00:05, Jul 05,2018 | Updated: 23:22, Jul 04,2018

 
 

Dhaka stocks rebounded on Wednesday due mainly to bargain hunting by investors after a three-day plunge that had pushed down the Dhaka Stock Exchange’s key index to a one-and-a-half-year low in the previous trading session.
DSEX, the key index of the DSE, rose by 0.68 per cent, or 35.95 points, to close at 5,309.11 points on Wednesday after losing 155.81 points in the previous three trading sessions.
The market rebounded as bargain hunters were out in force, stockbrokers said.
As a result, the market witnessed positive vibe from the very beginning of the session and the trend continued throughout the session, they said.
Besides, a section of investors might have started purchasing shares with an expectation that the capital market might witness positive trend if banks and non-bank financial institutions become successful in brining interest rate on deposit down to 6 per cent, stockbrokers said.
They said a reduced deposit rate in the banks and NBFIs would ultimately encourage savers to divert their fund to the capital market with a view to getting higher returns.
Of the 337 companies and mutual funds traded, 207 advanced, 87 declined and 43 remained unchanged.
The turnover on the bourse also increased to Tk 741.22 crore on Wednesday compared with that of Tk 627.88 crore in the previous trading session.
‘The broad index was at the bottom during the first hour of the trading session but gradually it started rising and reached the peak in the middle of the day,’ said LankaBangla Securities in its daily market commentary.
‘This upward trend at the market was mainly driven by positive movement in all the sectors except telecommunication,’ it said.
‘Within the large-cap sectors, the fuel-and-power sector posted highest positive movement with 1.66 per cent gain,’ said LankaBangla.
DS30, the blue chip index of the DSE, finished at 1,902.57 points, adding 0.42 per cent or 8.04 points.
The Shariah index of the bourse, DSES, rose 0.72 per cent, or 8.94 points, to close at 1,245.47 points.
Bashundhara Paper Mills Limited led the turnover chart with its shares worth Tk 59.15 crore changing hands. The newly listed company also became the top gainer on the day, adding 9.99 per cent.
Monno Ceramic Industries, United Power Generation and Distribution Company, Legacy Footwear, Ratanpur Steel-Rolling Mills, Alif Industries, Shepherd Industries, Prime Textile Spinning Mill, Sinobangla Industries and Dragon Sweater and Spinning were the other turnover leaders.
Modern Dyeing and Screen Printing was the worst loser on the day with its share prices declining by 5.96 per cent.

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