Stocks rebound after three-day fall

After three days of fall, Dhaka stocks rebounded on Monday as bargain hunters opted to put fresh funds in beaten-down issues by taking advantage of the recent market corrections.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), surged 14.7 points or 0.2 per cent to settle at 6,271 against 6,256 in the previous trading session.

Among other indices, DS30, the blue-chip index, added 6.75 points or 0.30 per cent to close at 2,232, and the DSES, the Shariah-based index, gained 5.70 points or 0.41 per cent to 1,371.

Meanwhile, the capital bourse witnessed a slight decrease in participation, with the DSE turnover dropping by 7.5 per cent to Tk 435 crore against Tk 470 crore in the previous session.

The market witnessed volatility almost the entire session, extending the downbeat vibe from the previous session, but the late-session buying binge on selective issues helped the core index post a moderate return, said EBL Securities, a stockbroker, in its daily market review.

Investors continued their chase for the recently rallied scrips with positive earnings performance that they perceived were being traded at a lucrative price level, it added.

Cautious investors, however, still preferred to stay on the sidelines in the face of an unclear view of the market momentum, EBL Securities stated.

The IT sector topped the turnover chart with a contribution of 15.0 per cent to the total turnover of the DSE, followed by pharma (13.9 per cent) and food (10.7 per cent).

Most of the sectors displayed positive returns in the premier bourse, with the IT posting the highest gain of 3.2 per cent, followed by services (2.2 per cent) and travel (2.0% per cent).

On the other hand, the jute sector suffered the most with a loss of 0.9 per cent, followed by general insurance (0.6 per cent) and life insurance (0.2 per cent).

Out of the securities traded, 56 stocks advanced, 113 issues declined and 222 scrips did not see any trading movement on the DSE trading floor.

The port city bourse, CSE, also settled on green terrain, with its two major indices – the selected indices (CSCX), and the all-share price index (CASPI) – advancing by 12.3 points and 20.1 points respectively.