Bargain hunters push stocks upward

Following sharp falls over a recent downturn, stocks bounced back on Tuesday as many investors were trying to bag some oversold stocks.

DSEX, the broad index of the Dhaka bourse, increased by 0.64% or 39.5 points to close at 6,231, while the Shariah index DSES and blue-chip index DS30 closed 0.93% and 0.58% higher respectively.

"The recent market corrections created investment opportunities for bargain hunters as they perceived many stocks being traded at a lucrative price level," EBL Securities wrote in its daily market commentary after the trading hours.

DSEX, from its early October peak of 6,590, spiralled down to 6,181 on Monday dragging most of the stocks' prices much lower, while nearly four in every five scrips were stuck on the floor prices the regulator imposed at the end of July.

Many of the worst-hit stocks prior to Tuesday rebounded sharply to occupy the day's top gainers' list, while 78 scrips in the Dhaka Stock Exchange (DSE) advanced against a decline of only six.

Unlike the previous session, the market observed an upward trend throughout the session as buyers dominated the market, focusing on the recently beat-down stocks, EBL Securities analysts wrote.

Increased interest of buyers helped more trades and turnover as the premier bourse registered Tk429 crore in daily turnover on Tuesday, 21.8% higher from its four-month low on Monday.

Chartered Life Insurance, Eastern Housing, BDCom Online, Intraco Refueling, Parma Life Insurance, Navana Pharma, BD Thai Food, Apex Foods, Jute Spinners and Orion Pharmaceuticals were the top gainers of the day.