Stocks’ recovery extends amid huge turnover surge

Dhaka stocks extended their recoveries for the second consecutive trading session on Tuesday as investors continued chasing down beaten-down issues by taking benefit of the recent market correction.

The premier bourse Dhaka Stock Exchange (DSE) rebounded riding on investors’ growing optimism following the regulator’s assurance of not withdrawing the floor prices in the near future.

The DSEX, the broad index of the prime bourse Dhaka Stock Exchange (DSE), jumped 17.7 points to settle at 6,217 against 6,199 in the previous trading session.

Among other indices, the DS30, the blue-chip index, rose 2.21 points or 0.09 per cent to close at 2,220, and the DSES, the Shariah-based index, gained 3.28 points or 0.24 per cent to settle at 1,359.

Meanwhile, the premier bourse witnessed a big increase in participation, with the DSE turnover surging by 60.7 per cent to Tk 420 crore against the tally of 261 crore in the previous session.

Investors opted to chase quick gain opportunities in sector-specific scrips since they expect the market to remain concentrated on selective issues as the floor price is likely to be in place for the foreseeable future, said EBL Securities, a stockbroker, in its daily market review.

The IT sector topped the turnover chart with a contribution of 19.3 per cent to the total turnover of the DSE, followed by the pharma (10.3 per cent), and life insurance (9.1 per cent).

Almost sectors displayed positive returns at the Dhaka bourse, with the IT sector posting the highest gain of 3.0 per cent, followed by paper (2.4 per cent) and general insurance (1.8 per cent).

Out of the securities traded, 106 stocks advanced, 56 issues declined and 229 scrips did not see any 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 15.3 points and 27.3 points respectively.