Stocks snap five-day falling streak
Higher participation of investors ended the five-day falling streak of shares on the Dhaka Stock Exchange (DSE) yesterday.
The DSEX, the benchmark index of the premier bourse, rose 67 points, or 1.27 per cent to end the day at 5,385.
However, many stocks have experienced drastic falls due to the downward trend of the index, said a stock broker. As a result, many stock investors incurred losses in the last few days, he added.
Big players went after hot stocks after a gap, such as Beximco Ltd, Beximco Pharmaceuticals, Robi Axiata, and LankaBangla Finance, he pointed out.
Among major sectors, engineering and telecoms closed positive.
Turnover, an important indicator of the market, dropped more than 10 per cent to Tk 530 crore.
Many investors adopted the wait-and-see approach to see the next movement of the index, said a merchant banker. "This kept the turnover at a lower level."
Investors can put money into well-performing companies, considering their price earnings (PE) ratio and potential, he said. "If they do that, they will not be loser. Investments should long term."
PE ratio is a company's price compared to its earnings. A company is considered lucrative when the ratio is lower.
Investment into low-performing companies can cause losses, the merchant banker added.
At the DSE, 190 stocks rose, 35 declined and 118 remained unchanged.
Debutant eGeneration rose 50 per cent yesterday and topped the gainers' list, followed by Beacon Pharmaceuticals, Robi Axiata, Zahintex Industries, and JMI Syringes.
Beximco Ltd topped the turnover list with tis shares worth Tk 124 crore changing hands, followed by Robi Axiata, British American Tobacco Bangladesh, Beximco Pharmaceuticals, and LankaBangla Finance.
NCC Bank First Mutual Fund shed the most as it fell 4.93 per cent. Shares of Unilever Consumer Care, Fareast Finance, BIFC and International Leasing and Financial Services also gave up.
Shares on the port city bourse also rose. The CASPI, the general index of the Chittagong Stock Exchange, added 207 points, or 1.34 per cent, to close at 25,590.
Among 216 stocks traded, 112 advanced, 48 dropped, and 56 remained unchanged.
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