Stocks bounce back after a dip

Stocks in Bangladesh bounced back yesterday after falling by a large margin on the previous day.

The major index of Dhaka Stock Exchange (DSE), the DSEX, rose 1.17 percent from that on the day prior to settle at 5,413.64.

The market had been on a losing streak and it plunged another 95 points or 1.75 percent on Wednesday, when the bourse opened after an additional three days of general holidays.

The other two indexes of the DSE showcased a similar trend, with the Shariah-based DSES edging up 1.18 percent to 1,183.37 while the blue-chip DS30 growing 1.27 percent to 1,932.

Chittagong Stock Exchange also saw a rising trend as the Caspi, the main index of the premier bourse of the port city, went up 56.34 points, or 0.37 percent, to close at 15,415.37.

It is really tough to pinpoint the factors responsible for any day's rise, because such fluctuations are a part of the inner workings of the stock market, said an investor based in Dhaka.

After days of curfew and internet blackout, normalcy is gradually returning to the market with the restoration of broadband internet services, which helped investors regain confidence, he said.

The day's turnover, meaning the total value of shares changing hands at the DSE, stood at Tk 497 crore, a 212 percent rise from the previous day.

Block trades, meaning high volume transactions of privately negotiated securities outside the open market, contributed 4.4 percent to the overall turnover.

Square Pharmaceuticals was the most traded share with a turnover of Tk 35.1 crore.

Of the issues that were traded on the DSE, 286 went up, 66 closed lower and 40 did not see any price swings.

Techno Drugs topped the gainers' chart with a rise of over 9 percent, followed by Agni Systems, Midland Bank, BDCOM Online and eGeneration.

Zeal Bangla Sugar Mills, Parma Aids, Aftab Automobiles and Ratanpur Steel Re-Rolling Mills were also on the list.

On the other hand, Rangpur Foundry shed the most, losing 2.5 percent.

Khan Brothers PP Woven Bag Industries, Jute Spinners, Sea Pearl Beach Resort & Spa, and Premier Leasing & Finance did not fare well.

Rupali Life Insurance Company, United Insurance Company, National Tea Company, Peoples Insurance Company and Regent Textile Mills were also on that list.

Blue chip firms like Beximco Pharmaceuticals, British American Tobacco (BAT) Bangladesh Company, Renata, Square Pharmaceuticals, Grameenphone, Robi Axiata, Uttara Bank, Midland Bank, Navana Pharmaceuticals and Orion Pharma showcased a strong performance.

Of them, Beximco Pharmaceuticals logged a gain of 5.62 percent, followed by BAT Bangladesh Company (4.55 percent) and Renata, Square Pharmaceuticals and Grameenphone, which registered gains of over 3 percent each, according to the website of the LankaBangla Financial Portal.

However, there were others that suffered losses such as Premier Bank, Orion Infusion, Sea Pearl Beach Resort & Spa, Linde Bangladesh, Eastern Bank, Rupali Life Insurance, Trust Bank, SK Trims & Industries, and Eastland Insurance Company.

BRAC EPL Stock Brokerage, in its daily market update, said a positive performance was posted by all the sectors which account for large amounts in market capitalisation, with telecommunication booking the highest gain of 2.48 percent.

Market capitalisation means the total value of a company's shares at present.

Food and allied followed suit with 1.61 percent, followed by pharmaceuticals 1.39 percent, non-bank financial institutions 1.31 percent, banking 1.04 percent, fuel and power 1.01 percent, and engineering 0.95 percent.