Stocks break seven-day losing streak
Stocks returned to the black yesterday after breaking a seven-day losing streak, as investors rushed to take positions in low-priced securities.
DSEX, the benchmark index of the premier bourse, rose 100.77 points or 2.41 percent, finishing the day at 4,272.17 points. It was the highest single day gain since May 2015.
“Lucratively priced fundamental stocks attracted bargain hunters,” said IDLC Investments, a merchant bank.
LankaBangla Securities said the market’s nerve was stained in the last few trading sessions as around Tk 10,000 crore of market value evaporated in just eleven trading days.
However, it said, half of that loss has been recovered in a single epic session as the benchmark index came roaring back yesterday. Stocks have got a boost from the central bank’s declaration on the relaxation of rules for banks to adjust their exposure to the capital market, the stockbroker said.
Under the revised policy, the central bank said the banks would be allowed to adjust their overexposure through restructuring the exposure components and enhancing the capital of their subsidiaries with some internal adjustments.
Turnover, another important indicator of the market, however, dropped 12 percent to Tk 405.85 crore, with 12.48 crore shares and mutual fund units changing hands on the DSE.
Of the traded issues, 263 advanced and 24 declined with 29 securities closing unchanged on the premier bourse.
MJL Bangladesh dominated the turnover chart with 21.01 lakh shares worth Tk 22.65 crore changing hands, followed by Keya Cosmetics, BSRM, Linde Bangladesh and United Power Generations and Distribution Company.
All the major sectors gained in market capitalisation with engineering increasing the most, 3.63 percent, followed by cement that rose 3.5 percent, textile 3.48 percent, non-bank financial institutions 2.87 percent, banks 2.06 percent, fuel and power 1.66 percent, telecom 1.62 percent and general insurance 1.54 percent.
Eastern Cables was the day’s best performer with 9.96 percent in gains, while BD Welding Electrodes was the worst loser, shedding 18 percent.
Chittagong stocks also jumped yesterday with the bourse’s benchmark index, CSCX, increasing 186.88 points or 2.39 percent to finish the day at 7,981.82 points.
Gainers beat losers as 192 advanced and 33 declined, while 15 finished unchanged on the Chittagong Stock Exchange. The port city bourse traded 1.01 crore shares and mutual fund units worth Tk 23.19 crore in turnover.
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