Stocks close higher with turnover lowest in 4 months
After three consecutive sessions of sharp selloffs, Dhaka stocks closed higher on Tuesday as bargain hunters opted to bag some shares at lower prices.
DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), closed 0.25% higher at 6,315 points as 110 scrips advanced and 52 declined.
However, the weakened confidence of investors regarding the market direction did not allow much participation and that caused a decline in turnover.
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DSE turnover declined by 18% to Tk386 crore on Tuesday which was the lowest since 29 March.
"The market observed a lacklustre trading session since the majority of investors remained reluctant to actively participate in the market. Some opportunistic investors' bargain hunting activities propelled the prime index to break its three-day losing streak and settle in green territory," wrote EBL Securities in its daily market commentary.
"Buyers ended up on the dominant side since a portion of investors chased rumour-based junk stocks in anticipation of quick gains as their willingness to take long-term positions in equities has been weakened due to the waning market momentum coupled with the prevailing macroeconomic and political concerns," it added.
On the sectoral front, food, pharmaceuticals, and miscellaneous stocks together made more than one-third of the day's turnover.
Most of the sectors displayed positive returns, out of which cement, travel, and paper sectors gained by more than 1%. On the other hand, jute and general insurance faced small declines in their respective market capitalisations.
