Stocks bounce back with a bang

Dhaka stocks bounced back strongly on Tuesday and recovered the previous session’s record losses completely as institutional investors came up with buying lucrative shares.

The benchmark DSEX index, which in previous session saw the biggest single-day fall in seven months, returned to green and went up 120.48 points or 1.75 per cent to 7,005.78 points thanks to the investors’ buying mood.

The Shariah-based DSES index was up 16.86 points or 1.15 per cent to 1,482 while the blue-chip comprising DS30 index rose 17 points or almost 0.64 per cent to 2,661.

Out of the 376 issues traded, 340 advanced, 22 declined, and 14 remained unchanged on the Dhaka bourse on the day.

However, Turnover dropped to Tk 1,387 crore on the Dhaka bourse, which was 5.71 per cent lower than the previous day’s tally of Tk 1470 crore.

Stock market insiders said that the institutional investors came up with buying moods on the day.

Insurance and financial institutions stocks came back strongly as all the companies saw a price rise on Tuesday. The share price of most of the banks and pharma stocks also gained.

Among others, GPH Ispat rose 5.67 per cent, Titas Gas 3.86 per cent, LankaBangla Finance 3.63 per cent, Olympic 3.31 per cent, and Ifad Autos 2.96 per cent.

However, BATBC rose only 1.31 per cent but contributed the highest 8.32 points in the index, followed by Robi 7.18 points, ICB 5.93 points, and Beximco Limited 2.7 points.

Among major sectors, services and real estate, travel and leisure, and textile sectors experienced price appreciation while telecom sector faced correction, said the market commentary by UCB Stock Brokerage Limited.

EBL Securities Limited in its daily market review said that the upward momentum was observed by investors as economic activities is coming back to full swing and inflation is on the rise, which is being viewed as a precursor to reverse the bullish momentum.

Meanwhile, the port city bourse, Chittagong Stock Exchange (CSE), also ended in green terrain. The selective index -- CSCX -- and All Share Price Index -- CASPI --  jumped by 1.31 per cent and 1.36 per cent respectively.

Out of the 300 issues traded, 245 advanced, 33 declined, and 22 remained unchanged on the bourse.