Stocks recover from seven-day slump

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Stocks recover from seven-day slump
Stocks recover from seven-day slump

Stocks recover from seven-day slump

Stocks bounced back yesterday, snapping a week-long losing streak as buyers outnumbered sellers for the first time in the last seven trading days.

Some institutional investors purchased shares that shed in value in the past few days, when many investors opted to book profits as the market was at a high point, according to a stock broker.

However, people now hope that the market will rise again thanks to recent moves by the Bangladesh Securities and Exchange Commission (BSEC).

On Tuesday, BSEC announced that it would allow brokerage firms and merchant banks to raise funds by issuing bonds and then reinvest in the market.

The stock market regulator also decided to allow direct and indirect investments from a market stabilisation fund worth about Tk 21,000 crore, part of which would be used to subscribe to brokerage houses’ and merchant banks’ bonds to indirectly support the market.

“With this, liquidity in the market will soar and so, people stopped selling their shares,” the stock broker said.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), soared by 55 points, or 0.79 per cent to 7,020 yesterday.

However, turnover at the country’s premier bourse dropped 22 per cent to Tk 1,310 crore, down from Tk 1,682 crore a day earlier.

At the DSE, 153 stocks advanced, 179 fell and 42 remained unchanged.

“Stocks observed a positive session after passing seven consecutive bearish sessions as optimistic investors were confident in making investments,” International Leasing Securities, a local stock brokerage, said in its daily market review.

The BSEC has paved the way for reinvestment in the market through its decisions, such as the one regarding its stabilisation fund, which have influenced investors to limit their profit booking and instead enhance purchases, it added.

NRB Commercial Bank topped the gainers’ list, rising 9.84 per cent, followed by Beximco Limited, Beach Hatchery, Advent Pharmaceuticals, and Golden Son.

Mithun Knitting shed the most, losing 7.18 per cent, followed by Usmania Glass, Wata Chemical, FAS Finance, and Esquire Knit.

Stocks of Beximco Limited traded the most, worth Tk 285 crore, followed by IFIC Bank, NRB Commercial Bank, Delta Life Insurance, and Orion Pharmaceuticals.

Among major sectors, miscellaneous, IT and non-banking financial institutions experienced price appreciation while life insurance, food and allied products, and mutual funds faced correction, according to UCB Stock Brokerage.

The Chittagong Stock Exchange (CSE) also soared yesterday as the CASPI, the general index of the port city bourse, edged up 172 points, or 0.83 per cent to 20,693.

Among the 273 traded stocks, 114 rose, 132 fell and 27 remained unchanged.

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