Stocks continue recovery into fourth session
Dhaka and Chittagong stocks were on the recovery path for the fourth consecutive session on Sunday thanks to a minor correction in global crude oil prices and the regulatory disruptions.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), surged 97.6 points, or 1.5%, to settle at 6,766.
Investors are putting fresh bets on lucrative issues after the extraordinary regulatory intervention restored much-needed confidence in the bourse, said EBL Securities in its daily market commentary.
The market began to recover from a sharp dip last week as soon as the Bangladesh Securities and Exchange Commission (BSEC) announced no stock can fall by more than 2% in a day, while the upper circuit breaker remained the same – at 10%.
The regulator also had meetings with different stakeholders urging them not to go for panic selling instead of buying undervalued stocks.
Analysts at different capital market intermediaries said, slightly easing crude oil prices in the global market has also helped breath the local stock investors who have been much concerned about the rising commodity prices that might further accelerate inflation to weaken consumers' purchasing power and hit corporate profitability.
EBL Securities analyst added many investors favoured being on the side-line for observing the market trend as concerns loomed due to rising inflation, depreciation of the currency, and decline in remittance.
Bourses observed a decrease in participation while turnover in the DSE declined by 5.9% to Tk999 crore on Sunday.
Textile, engineering and pharmaceutical sectors dominated the turnover pie with 13-15% contribution separately.
Most of the sectors displayed positive performance, out of which ceramic, cement and services sectors gained more than 3%.
Tannery, general insurance and jute sectors suffered minor price corrections.
However, investors' optimism has been reflected in the advance-decline ratio in the DSE. Out of the 384 issues traded, 273 advanced, 87 declined, and 24 remained unchanged on Sunday.
Chittagong Stock Exchange also closed in the green territory while turnover in the port city bourse increased to over Tk41 crore from Tk28 crore.
