Investors’ buying spree helps stocks rebound

After nearly a month-long bearish trend, Dhaka stocks started to rebound in the recent trading sessions, helping the Dhaka Stock Exchange (DSE), the premier bourse, end the week higher.

The buying behaviour of bargain hunters with chasing down some sector-specific issues trading at lucrative prices following the recent market corrections helped stocks turnaround.

A section of investors was seen this week putting fresh funds in the recently beaten-down issues aiming to book quick gains, according to stockbrokers.

Many investors, however, stayed on sidelines as most of the securities were stuck at their floor prices for a long time, the said.

The DSEX, the broad index of the DSE, advanced 30 points or 0.5% to settle the week at 6,245.

Among other indices, the DS30, the blue-chip index, added 26.46 points or 1.21 per cent to close at 2,216, and the DSES, the Shariah-based index, gained 16.2 points or 1.2 per cent to finish the week at 1,370.

Investors still preferred to remain on the sidelines, causing the average turnover to decline marginally by 2.1 per cent to Tk 405 crore this week against Tk 414 crore in the previous week, said EBL Securities, a stockbroker, in its weekly market review.

The market performed five sessions this week.

The market started on a positive note by advancing 0.28 per cent on Sunday. It, however, turned negative on Monday by giving up 0.55 per cent.

The prime bourse again turned positive on Tuesday with a gain of 0.23 per cent, and continued the similar trend on Wednesday with a rise of 0.38 per cent, and finished Thursday’s trading with a return of 0.15 per cent.

Investors were primarily active in the IT sector, followed by the pharmaceutical & chemicals, and life insurance sectors, EBL Securities stated.

Most of the sectors returned to green and showed positive returns with the jute sector posting the maximum gain of 9.2 per cent, followed by the travel (4.1 per cent) and the tannery (2.4 per cent).

On the other hand, the paper sector suffered the most with a loss of 3.6 per cent, followed by the services (1 per cent) and life insurance (0.6 per cent).

Financial sectors posted mixed performance this week with the general insurance sector booking the highest gain of 0.12 per cent, followed by the bank (+0.12 per cent).

On the other hand, the life insurance stocks experienced the highest loss of 0.59 per cent, followed by the NBFI (0.01 per cent), and the mutual fund.

The non-financial sectors, however, displayed positive performance this week with the pharmaceutical sector booking the highest gain of 0.96 per cent, followed by food & allied (0.25 per cent), fuel & power (0.1 per cent), engineering (+0.09 per cent), and telecommunication scrips.