Market rebounds as frisky investors chase large-cap stocks

Stocks in Bangladesh returned to the bullish trend after a dismal week as investors largely went on buying selective stocks with the anticipation of quick gains.

The investors, at the same time, also took a cautious stand, influenced by the gloomy earnings forecast of the major companies owing to the recent macroeconomic hardships.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), surged 48.99 points or 0.75 per cent to settle at 6,564 points this week.

Among other indices, the DS30, the benchmark index of the DSE, gained 19.33 points to close the week at 2,365.69, while the DSES, the Shariah-based index, added 7.17 points to 1,436.72.

Meanwhile, turnover averaged out at Tk 2,022 crore this week, up 42.74 per cent compared to that in the last week.

The pharmaceutical sector reigned the turnover chart by contributing 25.34 per cent to the total turnover.

Travel and leisure, IT, and paper and printing sectors closed positive this week while jute, textile, and ceramics faced correction, said UCB Stock Brokerage in its weekly market review.

Out of the five trading sessions this week, the market started on a positive note by gaining 0.31 per cent on Sunday. It remained positive by adding 1.01 per cent the following day.

It, however, turned negative on Tuesday by giving up 0.06 per cent and remained the same the following day by shedding 0.69 per cent.

Finally, the market finished positive by gaining 0.19 per cent in the last trading session of the week.

According to the BRAC EPL, a stockbroker, most of the financial sectors registered negative performance this week.

Among them, the non-bank financial institution (NBFI) registered the highest loss of 1.78 per cent, followed by general insurance (1.59 per cent), bank (1.23 per cent), mutual fund (0.32 per cent), and life insurance (1.55 per cent).

The pharmaceutical sector booked the highest gain of 2.33 per cent, followed by fuel and power (1.2 per cent), and telecommunication (0.05 per cent).

The equity indices of the Dhaka bourse managed to remain afloat since investors focused their attention on selective stocks with the anticipation of quick gains while other stocks extended their corrections, said EBL Securities, another stockbroker, in its weekly market review.

The prime index of the DSE surpassed the 6,600-mark and the single-day turnover hit a record high of Tk 28 billion this week, but the market could not uphold the upbeat momentum as investors took a cautious stand, influenced by macroeconomic concerns, it commented.

Out of the 396 issues traded, 86 advanced, 166 declined, and 134 did not see any price movement on the DSE trading floor this week.

Meanwhile, the port city bourse, the Chittagong Stock Exchange (CSE), also closed positive this week with CSCX and CASPI rising by 1.07 per cent and 1.06 per cent respectively.