Investors return to trading floor in hope of market recovery

Dhaka stocks extended its gaining streak for the second consecutive session on Wednesday as investors’ participation started to regain across the trading floor with the anticipation of a gradual economic recovery.

Investors, according to stockbrokers, started to break their long-time hibernation as the country’s macroeconomic forecasts for the newly started year, made them optimistic about the recovery of the capital market as well.

This is because they were rejoining the trading floor eying the recently beaten-down securities in hope of quick gains.

The DSEX, the broad index of the Dhaka Stock Exchange (DSE), added 17.56 points or 0.28 per cent to settle at 6,202 against 6,185 points in the previous trading session.

Among other indices, the DSES, the Shariah-based index, advanced 3.60 points or 0.26 per cent to close at 1,355, and the DS30, the blue-chip index, moved up 4.68 point or 0.21 per cent to finish at 2,196.

Meanwhile, the premier bourse witnessed a significant increase in participation with the turnover jumping by 46.4 per cent to Tk 291 crore against Tk 198 crore in the previous session.

The market followed an uptrend throughout the session as bargain hunters were showing an increasing buying interest on selective issues as recent bearish sentiment had created quick-gaining opportunities in the market, said EBL Securities, a stockbroker, in its daily market review.

Moreover, investors were now anticipating a favorable outcome from the regulator’s meeting on the current scenario of the market, gearing up their confidence to inject funds in the market, it added.

The pharma & chemicals sector topped the turnover chart with a contribution of 19.2 per cent, followed by the IT (13.3 per cent) and the Travel (11.3 per cent).

Most of the sectors displayed positive returns at the DSE with the travel sector posting the highest gain of 6.9 per cent, followed by IT (2.8 per cent) and services (1.8 per cent)

On the other hand, the jute sector suffered the most with a loss of 1.0 per cent, followed by the textile (0.1 per cent).

Out of the issues traded, 77 advanced, 90 declined, and 224 remained unchanged on the DSE trading floor.