Stocks rise but turnover drops
Stocks in Bangladesh yesterday returned to the green territory following two days of decline while turnover of the country's premier bourse in Dhaka took a dive.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), advanced 15 points, or 0.25 per cent, to close the session at 6,195 points.
The DS30, the blue-chip index, rose 0.12 per cent to 2,194 while the DSES, the index that represents shariah-compliant companies, edged up 0.24 per cent to 1,355.
Some individual investors are trying to buy stocks that were moving based on rumours and so, these stocks have remained in the top gainers' list for the last few days, according to a stockbroker.
"As the well-performing stocks are not moving, they [individual investors] targeted newly listed and low capital-based companies," he said.
However, institutional investors are cautious about investing in the market amid the present gloomy economic scenario, he added.
Among the traded companies, 74 advanced, 91 declined and 168 remained the same.
The stock market bounced back after a two-day slump ahead of the New Year as bargain hunters showed cautious interest on sector-specific stocks at lucrative prices while the market lost 91 points in the last nine days, International Leasing Securities said in its daily market review.
The market started with a sideways movement that turned into an upward trajectory after the mid-session. Investors' reluctance had decreased trading activities, leading to low turnover for the last few weeks, it added.
Turnover, an important indicator of the market's liquidity, decreased 4 per cent to Tk 258 crore while it was Tk 269 crore on the previous day.
All the sectors achieved price appreciation except mutual funds, which dropped 0.07 per cent, whereas services rose 2.5 per cent, paper declined 2.2 per cent and IT fell 2.2 per cent.
Investor activity was mostly focused on the pharmaceutical (33.1 per cent), bank (7.3 per cent) and IT (6.8 per cent) sectors.
Islami Commercial Insurance posted the highest appreciation, rising 9.87 per cent. Meanwhile, Orion Infusion surged 8.7 per cent and eGeneraion Ltd advanced by more than 7 per cent.
Tallu Spinning Mills suffered the sharpest fall, sliding down by 1 per cent, while Renwick Jajneswar, Eastern Lubricants, and Libra Infusion also dropped by around 1 per cent each.
Orion Infusion was the most traded stock with shares worth Tk 23 crore being transacted. Orion Pharma, Monno Ceramic Industries, and Intraco Refueling Station also saw significant transactions.
The Caspi, the all-share price index of the Chittagong Stock Exchange, increased by 15 points, or 0.08 per cent, to end the day at 18,294 points.
Of the securities transacted, 34 advanced, 25 declined, and 77 did not show any price movement.