Stocks finish up as jitters ease
Optimism capped a truncated trading week in the stockmarket yesterday after share prices showed clear signs of a rebound.
The General Index of Dhaka Stock Exchange rose by 105 points, or 1.45 percent, to 7,385 at the end of the four-hour trading session, while the Selective Categories Index on Chittagong Stock Exchange gained 71 points, or 0.52 percent, to 13,562.
Market analysts said buyers and sellers were quite vibrant at bargain hunting, breaking the turnover impasse of the preceding couple of days.
The day's turnover increased by 75 percent to Tk 1,030 crore, reflecting the normal liquidity behaviour of the market, LankaBangla Securities, the leading stockbroker, said in its regular analysis.
"In the two previous trading sessions, the index increased 953 points with substantially low turnover and volume level as most of the investors were sitting on the red zone of their portfolio and also reluctant to offload their shares at marginal or no significant discount compared with the buy price," the analysis said.
"Many investors offloaded the shares after considerable deliberations while many took position in corrected stocks anticipating healthy bottom-line growth and corporate declaration in the coming months," it said.
Merchant bankers, who sat yesterday afternoon to review the last three days' market experience among themselves, said the liquidity crisis was easing and its reflection was evident in turnover.
The market also behaved quite normally. “Retail investors showed relatively matured behaviour in the last three days which indicates a restoration in their confidence," Sheikh Mortuza Ahmed, president of Bangladesh Merchant Bankers' Association said after the meeting.
The scenario might even turn better in the coming days, hoped Ahmed, also the chief of Prime Bank Investment Ltd, a subsidiary of Prime Bank.
On the trading floor of the premier bourse, advancers beat losers 139 to 115 with three securities unchanged. More than 8.36 crore shares and mutual fund units changed hands.