Stocks rebound as bargain hunters move in
Following recent declines, investors were attracted to undervalued stocks, sparking a resurgence in trading activity, according to the market insiders
The country's stock market on Wednesday (28 August) showed signs of recovery as bargain hunters took advantage of lower prices to build new positions.
Following recent declines, investors were attracted to undervalued stocks, sparking a resurgence in trading activity, according to the market insiders.
Market analysts suggest that this uptick may continue as more buyers look to capitalise on discounted opportunities.
On Wednesday, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), edged up 70 points to reach 5,756, while the blue-chip index, DS30, gained 30 points to close at 2,117.
Keep updated, follow The Business Standard's Google news channel
The market capitalisation on the DSE rose by Tk6,300 core to reach Tk6.95 lakh crore.
Besides, the port city bourse Chittagong Stock Exchange's (CSE) all-share price index CASPI rose by 133 points to reach 16,402, while the general index CSCX ended 83 points higher at 9,883.
EBL Securities in its daily market review said the capital market resumed its modest recovery mode following a single-day break as bargain hunters favoured taking positions in the potentially lucrative scrips with expectations of short-term gains.
The indices remained upbeat throughout the session, while the market recovery was aided by price appreciation in the majority of stocks, it added.
The DSE turnover, a crucial market indicator, witnessed a 20% increase to reach Tk898 crore, while the Chattogram bourse saw a 96% decline to Tk8 crore on Wednesday.
Among the traded stocks, 271 advanced, while 79 declined and 48 remained unchanged.
On the DSE, the banking sector had the highest turnover, contributing 27% of the total amount. It was followed by the pharmaceutical sector, which contributed 17.7%, and the food sector contributed 16.5%.
BRAC Bank topped the DSE turnover list with a value of Tk47.58 crore, followed by MJL Bangladesh, Olympic Industries and Grameenphone.
The DSE also saw significant trading in the block market, with a turnover value of Tk144.64 crore. The top-traded stock was BAT Bangladesh, with a turnover of Tk68 crore, followed by Prime Bank and Jamuna Bank.
Investors received the highest returns from the telecom, engineering, and insurance sectors. Specifically, the telecom sector provided a return of 5.1%, the engineering sector delivered a return of 3.8%, and the insurance sector offered a return of 3.7%.
Among the top ten gainers, six were insurance firms, indicating strong buying interest from investors in these stocks.
However, the loss-making Khan Brothers PP Woven Bag topped the gainers' list as its share price jumped by 9.97% to reach Tk94.8, followed by Central Pharma, Karnaphuli Insurance and National Life Insurance.
Marico, an India-based multinational firm, performed the worst on the day, with its share price dropping around 3%, followed by Salvo Chemical, Lovello, and Kay and Que.
