Stocks upbeat as investors’ optimism grows, liquidity crunch eases

Snapping a long-time bearish trend, Dhaka stocks bounced back and closed the week higher as bargain hunters returned to the trading floor aiming to book quick returns following the recent market plunge.

The bargain hunters were seen chasing down sector-specific securities which were being trading at a lucrative price level throughout the week.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), added 21 points or 0.34 per cent to close the week at 6,215.

Among other indices, the DS30, the blue-chip index, gained 5.5 points or 0.26 per cent to 2,199, and the DSES, the Shariah-based index dipped 4.3 points or 0.32 per cent to close at 1,357.

The average turnover of the premier bourse jumped by 87 per cent to Tk 420 crore this week against the average turnover tally of Tk 227 crore in the previous week.

The market despite some volatility held its upbeat momentum till the end of the week as the buying dominance prevailed across the bourse since investors chased selective issues to secure a quick-gain opportunity amid the prolonged bearish tone in the market, according to EBL Securities, a stockbroker.

The cautious investors, however, were still observing the market momentum in the face of a bleak outlook of the economy and dismal performance forecasts of the majority of listed companies, it added.

The market performed five sessions this week with the DSE starting the week on negative note on Sunday and remained negative on Monday as well.

The market, however, turned positive on Tuesday with a gain of 0.22 per cent, and stayed positive with 0.07 per cent positive return on Wednesday.

The DSE also closed the week with a gain of 0.09 per cent on Thursday.

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

Investors’ confidence restored riding on the indication of easing pressures on the macroeconomic front and the recent upward movement of the market, they stated.

Buyers dominated the trading floor throughout the week as opportunist investors continued to pour funds in lucrative issues which they perceived as a quick-gain opportunity, EBL Securities commented.

Most of the financial sectors registered negative performance this week with the general insurance experiencing the highest loss of 0.68 per cent, followed by mutual fund (0.11 per cent), bank (0.11 per cent), and NBFI.

The non-financial sectors posted mixed performance in the week with the pharmaceutical booking the highest gain of 0.68 per cent, followed by telecommunication.

On the other hand, the food & allied sector experienced the highest loss of 0.38 per cent, followed by engineering (0.03 per cent), and fuel & power (0.03 per cent).