Stocks rise but turnover falls

Bangladesh's stock market bounced back yesterday after taking a tumble the previous day.

However, market turnover dropped at the same time.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), advanced 25 points, or 0.34 per cent, to 7,367.

"Investors are optimistic about the market so the index rose," said a top official of a stock brokerage firm.

Optimism is always good for the stock market but investors need to be cautious about their investment decisions as many low-performing companies rose abnormally in recent times.

"Investing in well-performing companies instead can give long-term returns," he said, adding that many low-performing companies were on the DSE's top gainers' list yesterday.

Tallu Spinning and C&A Textiles, both of which are junk stocks, were among the day's top ten gainers while Tamijuddin Textiles, a recent returnee from OTC market to the main market, was also on the list.

At the DSE, 240 stocks rose, 124 declined and 12 remained unchanged.

Turnover of the Dhaka bourse dropped 21 per cent to Tk 1,962 crore, down from Tk 2,497 crore.

Although the market has been in a rising trend for the last few months, the top brass of the stock market regulator and analysts say the market is not yet overvalued.

"So, investor confidence keeps growing and the index remains in an upward trend," a merchant banker said.

"I also believe that the overall market is not overpriced but many stocks are. So, investors can invest but have to be cautious in choosing scripts," he added.

Stocks of LafargeHolcim Bangladesh traded the most, worth Tk 129 crore, followed by IFIC Bank, Power Grid, Beximco Limited, and Orion Pharmaceuticals.

Far East Knitting & Dyeing topped the gainers' list, rising 34 per cent after news broke that the company's board recommended 10 per cent cash dividends for the year that ended on June 30, 2021.

Its earnings per share stood at Tk 0.79 for the period while it was Tk 0.32 the year before.

Sonali Paper & Board Mills shed the most, falling by 9.39 per cent, followed by Unique Hotel, ICB Islamic Bank, Silva Pharmaceuticals, and Coppertech Industries.

The Chittagong Stock Exchange (CSE) also rose yesterday as the CASPI, the general index of the port city bourse, gained 74 points, or 0.34 per cent, to 21,515.

Among 314 traded stocks, 189 advanced, 106 fell and 19 remained unchanged.