Stocks bounce back, finally
Stocks soared resoundingly yesterday at last as institutional investors were slowly becoming active in the market again.
The DSEX, the benchmark index of the Dhaka Stock Exchange, rose 68.59 points, or 1.27 percent, to close the week at 5,429.69.
The index fell 13 days straight this month, its longest losing streak since its launch in January 2013. In those 13 days, the index saw 423.09 points knocked off and Tk 20,965 crore in market value wiped out.
Against the backdrop, the Bangladesh Securities and Exchange Commission organised a meeting yesterday in the headquarters of the Investment Corporation of Bangladesh to find out the reason behind the bear run.
Top brokers and merchant bankers were present in the meeting.
They pointed out that the banking sector's liquidity crisis, huge sell-offs by foreign investors, higher interest rate on deposits and savings certificate, and the lack of coordination among regulators are the main reasons behind the fall of the index.
Brokers were urged to bring good companies to the market to attract foreign investor.
Turnover, an important indicator of the market, declined 3.10 percent to Tk 473.44 crore, with 11.64 crore shares and mutual fund units changing hands on the DSE.
"The market soared as opportunistic investors opted to take fresh positions expecting a better performance ahead of budget declaration," said EBL Securities in its market review.
Of the traded issues, 208 advanced, 84 declined, and 41 closed unchanged on the premier bourse.
Intraco Refuelling Station dominated the turnover chart with its transaction of 53.09 lakh shares worth Tk 28.97 crore, followed by Miracle Industries, BSRM, Brac Bank and Advent Pharma.
Among the major sectors, banks increased 2.36 percent, followed by life insurance at 1.91 percent, textiles at 1.69 percent and engineering 1.20 percent.
Conversely, mutual funds as well as fuel and power declined 0.29 percent and 0.11 percent respectively.
HR Textile was the day's best performer with its 9.94 percent gain, followed by Atlas Bangladesh, Shepherd Industries, Simtex Industries and Orion Infusion.
Southeast Bank was the worst loser, shedding 11.69 percent, followed by International Leasing and Financial Services, Agrani Insurance, Dulamia Cotton and Zeal Bangla.
Chittagong stocks also soared yesterday with the bourse's benchmark index, CSCX, advancing 86.15 points, or 0.90 percent, to finish at 10,132.18. Gainers beat losers as 132 advanced and 64 declined, while 22 finished unchanged on the Chittagong Stock Exchange. The port city bourse traded 64.48 crore shares and mutual fund units worth Tk 18.26 crore.