After a one-week break, stocks bounced back as bargain hunters showed their appetite on major sector issues even with the coronavirus worries.
Week-on-week, the main index of the Dhaka Stock Exchange (DSE), DSEX, saw an upturn by 40.08 points or 0.66 per cent to settle at 6,092, after losing about 14 points in the last week.
Operators of the market stated that the stocks rebounded as institutional investors remained active in the market because of the removal of the floor prices from all listed securities.
They stated that, however, the retail investors mostly followed the cautious approach because of the rising trend of virus cases and deaths in the nation.
EBL Securities stated that the market holds its firm position at the 6,000 mark as buying support added strength to the equity indices despite worries over the afresh virus-induced shock to the nation’s economy.
It was noted by the stockbroker that investors expressed immense interest in the textile sector as they hope earnings from apparel exports will rise as the US and the EU economies, the major export destinations, rebounded with mass vaccinations.
21 per cent of the week’s total turnover was grabbed by the textile sector and generated the highest 10.90 per cent return led by Malek Spinning Mills.
Malek Spinning’s stocks increased around 53 per cent in the outgoing week after news broke that the company is going to invest Tk 2.13 billion to expand its production capacity in order to meet the growing demand for yarn.
The spinning company’s stocks closed at one year highest price at Tk 34.70 each on June 24 at the DSE.
Two other indices also edged higher with the DSE30 Index, containing blue chips, advanced 2.47 points to finish at 2,199 and the DSE Shariah Index (DSES) gained 10.93 points to close at 1,301.
The total turnover of the week on the DSE, however, dropped slightly to Tk 95.24 billion against Tk 97.98 billion in the week before.
The daily turnover averaged out at Tk 19.04 billion, which was 2.80 per cent lower than the previous week’s average of Tk 19.60 billion.
Market capitalization of DSE also rose to Tk 5,106 billion on June 24, up from the previous week’s Tk 5,081 billion.
Based on the International Leasing Securities, the regulatory moves to make the ailing listed companies operationally sound and financially viable for the greater interest of the shareholders and stock market tempted the investors positively to the market.
It was noted by the stockbrokers that the investors went on a buying spree in the textile, banking, food, pharma and financial institution sectors.
The heavyweight banking sector moved up more than 4.0 per cent, followed by mutual funds with 2.80 per cent, financial institutions 1.30 per cent, pharma 1.30 per cent, food 1.10 per cent and telecom 0.40 per cent.
The general insurance sector faced a big hit, losing 7.70 per cent, followed by life insurance with 6.20 per cent, miscellaneous 2.40 per cent, engineering 1.10 per cent and power 1.10 per cent.
Of the 375 issues traded, 224 advanced, 140 declined and 11 remained unchanged on the DSE trading floor during the week.
Beximco-the flagship company of Beximco Group-was the most traded stock with shares worth Tk 6.54 billion changing hands, making up nearly 7.0 per cent of the week’s total turnover.
It was followed by Pioneer Insurance (Tk 3.67 billion), National Feed Mills (Tk 2.30 billion), Makson Spinning Mills (Tk 1.92 billion) and Malek Spinning Mills (Tk 1.88 billion).
The Chittagong Stock Exchange (CSE) also ended marginally higher with the CSE All Share Price Index, CASPI, gaining 87 points to settle at 17,657 and the Selective Categories Index – CSCX rising 46 points to close at 10,622.
Of the issues traded, 192 advanced, 135 declined and 10 remained unchanged on the CSE trading floor.
The port city’s bourse traded 159.21 million shares and mutual fund units with a turnover value of Tk 5.61 billion.