Stocks bounce back, but turnover drops to 3-month low

The key index of Dhaka Stock Exchange (DSE) bounced back yesterday after suffering a major decline on the preceding day.

The stock market has been going through a bear run for the last two months although national elections-linked uncertainties have dissipated, signalling that worries over macroeconomic challenges are far from over.

The DSEX, the benchmark index of the prime bourse of Bangladesh, went up by 15.64 points, 0.27 percent, from that on the day before to close at 5,778.

The index plunged 71.71 points, or 1.22 percent, on Wednesday.

The DSES, the index that represents Shariah-compliant firms, rose 0.17 percent to 1,254.54 yesterday.

However, the DS30, which comprises blue-chip stocks, shed 0.04 percent to 2,011.

Turnover, which indicates the volume of shares traded during the session, slumped 23.70 percent to Tk 411 crore, the lowest in three months.

Of the issues that were traded on the DSE, 221 made gains, 120 declined, and 54 did not see any price swing.

IPDC Finance topped the gainers' chart with a rise of 9.79 percent, followed closely by Bangladesh Industrial Finance Company with a rise of 9.52 percent.

The two were followed by Aftab Automobiles, Union Capital and ACME Pesticides with 8.63 percent, 8.14 percent and 8.03 percent respectively.

Active Fine Chemicals, Beach Hatchery and Navana Pharmaceuticals along with Nitol Insurance Company, International Leasing and Financial Services and Fareast Islami Life Insurance Company were also on the gainers' list.

Walton Hi-Tech Industries shed the most, losing 4.66 percent.

The list of those suffering losses included Central Pharmaceuticals (4.50 percent), Mercantile Islami Life Insurance (3.90 percent), ICB AMCL CMSF Golden Jubilee Mutual Fund (3.84 percent), Northern Jute Manufacturing Company (3.58 percent) and Renata (3.57 percent).

Services and real estate, paper and printing and ceramics sectors closed in the positive while engineering, food and allied and pharmaceuticals closed in the negative, according to the market update by UCB Stock Brokerage.

The pharmaceuticals sector dominated the turnover chart, accounting for 19.97 percent of the total turnover.

In its market update, BRAC EPL Stock Brokerage said a mixed performance was staged by sectors which account for large amounts in market capitalisation, meaning the market value of their outstanding shares of stock.

Non-bank financial institutions (NBFI) booked the highest gain of 1.60 percent, followed by banks (0.57 percent), fuel and power (0.31 percent), telecommunication (0.04 percent), pharmaceuticals (0.32 percent), food and allied (0.72 percent), and engineering (2.22 percent).

Block trade, meaning large, privately negotiated securities transactions, contributed 5 percent of the overall market turnover.

The Caspi, the all-share price index of Chittagong Stock Exchange, edged up 26.38 points, or 0.16 percent, to close the day at 16,553.44 points.