Market back in green after two losing sessions

Following two days of correction, the stock market opened higher on Tuesday amid investors' renewed buying spree in some selective stocks, which they believe are likely to post higher earnings.

DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), jumped to 7,078 points in the first trading hour from the previous close of 7,019, as the bargain hunters began to pick their preferred shares at a lower price.

But since 11.00 am, the market kept correcting the early hour gains as investors began taking profits from majority scrips, except ones having higher earnings potential.

"Most of the early gains faded away in the late session as some cautious investors decided to sell-off shares amidst concerns over rising Covid-19 cases in the country," said EBL Securities in their daily market commentary.

At the end of the session, only the broad index survived the correction and closed 0.18% higher at 7,032 while blue-chip index DS30 and Shariah index DSES closed a few points lower than the previous close.

Besides, investors' participation in the market further declined as daily turnover in the DSE decreased by 8% to Tk1,117 crore.

According to equity analysts, the market positively responded to the recent news on the continuation of apparel exports growth and investors preferred the textile sector companies which are best capable of cashing in the opportunities, especially the top-tier spinning mills.

Square Textile and Matin Spinning shares had no seller at some point of trading after the stocks hit the top circuit breaker. Also, multinational cement maker Heidelberg saw an increased demand for its shares.

Textile, miscellaneous, and pharmaceuticals contributed most to the daily turnover of the DSE—over 30% together.

Non-bank financial institutions, textiles, and cement led the sectoral gain table with a 2.7%, 2.5% and 1.5% increase in their respective market capitalisations.

On the other hand, food, life insurance, and telecommunication sectors faced the maximum market capitalisation contractions of 1.3%, 1% and 0.8% respectively.

Out of the 384 issues traded in the DSE, 164 advanced, 162 declined, and 58 remained unchanged.

Meanwhile, in the Chittagong Stock Exchange (CSE), all the indices closed in green.

But, turnover in the port-city bourse drastically dropped to below Tk26 crore from over Tk38 crore in the previous session.