Stocks bounce back as investors start buying

The domestic stock market bounced back from two days of decline yesterday as investors assumed a buying spree.

"Many stocks became lucrative as the market index dropped and so, investors rearranged their portfolios," a stockbroker said.

But with the global economy under pressure due to Russia's war on Ukraine and the rising inflation rate in Bangladesh, some investors are still shaky about parking their funds in the stock market.

"So, investors are not confident enough even though the index rose," the stockbroker said, adding that the index edged upwards mainly due to a buying trend among a few big investors.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose by 79 points, or 1.19 per cent, to 6,771 yesterday.

At the DSE, 257 stocks advanced, 73 declined and 47 remained the same.

Turnover, an important indicator of the market, rose 50 per cent to Tk 957 crore from Tk 634 crore the previous day.

Stocks of Beximco Ltd remained the most traded stock with shares worth Tk 135 crore changing hands, followed by Aamra technologies with Tk 34 crore, VFS Tread with Tk 24 crore, Sonali Paper with Tk 24 crore and Orion Pharmaceuticals with Tk 24 crore.

Atlas Bangladesh topped the gainers' list, rising 9.92 per cent, followed by Aamra technologies, Alltex Industries, ICB AMCL First Agrani Bank Mutual Fund, and Sonali Paper.

"The stock market bounced back after a two-day slump as bargain hunters were showing interest in sector-wise issues," International Leasing Securities said in its daily market review.

Investors got back their confidence considering the merchant bankers' proposal of raising Tk 10,000 crore funds for strengthening the capital market and resolving the market liquidity crisis, it added.

The Bangladesh Merchant Bankers Association proposed arranging a fund of Tk 10,000 crore for intermediaries so that they can pour money into the market when the index is on a falling trend.

The benchmark index of the Dhaka bourse rose as a result.

Similarly, the DS30, the blue-chip index, and the DSES, the index for Shariah-compliant companies, gained 34.77 points and 19.06 points, respectively.

The top contribution to the main index came from Beximco Ltd, which added eight points.

Robi Axiata followed with 7 points while Square Pharmaceuticals and Beximco Pharmaceuticals added 5 points and 4 points respectively, according to data from amarstock.com, a stock market-related data provider.

All the sectors witnessed price appreciations with paper and printing rising 4.4 per cent, IT 2.8 per cent and cement 2.3 per cent.

The investors' attention was mainly concentrated on miscellaneous (16.8 per cent), textile (15.8 per cent), and pharmaceuticals and chemicals (12.5 per cent).

Paramount Insurance shed the most, dropping 5.89 per cent, while Asia Pacific Insurance fell 1.90 per cent, Hwa Well Textile edged down 1.89 per cent, Takaful Islami Insurance declined 1.89 per cent, and Envoy Textiles decreased 1.87 per cent.

The Chittagong Stock Exchange soared yesterday as the Caspi, the main index of the port city bourse, increased by 197 points, or 1 per cent, to 19,813.

Among the 286 traded companies, 168 rose, 77 fell and 41 remained unchanged.