Market bounces back on bargain hunting

Following a sharp fall in the previous trading session, stocks bounced back on Tuesday as bargain hunters opted for shares of their preferred company at a cheaper price, mostly based on the latest financial updates or the anticipated ones.

DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), shot higher in the morning and the intraday rally continued amid a few short downward moves.

Recovering Monday's loss, the index gained 1.02% at the end to close at 6,997.

"The major macroeconomic indicators indicated that the country is well placed to overcome the potential challenges from the deteriorating pandemic situation, which bolstered investors' confidence on the trading floor," said EBL Securities in its daily market commentary to explain the bargain hunters' behaviour.

Besides, investors' participation in the market increased while total turnover considerably swelled by 11.3% to Tk1,353 crore at the DSE on Tuesday.

Engineering, miscellaneous, and pharmaceutical sectors contributed the most to the daily turnover.

The majority of the sectors observed an increase in their respective market capitalisation, out of which ceramic, cement and life insurance gained by more than 4%.

Tannery and the general insurance sectors faced moderate correction.

Out of the 385 issues traded on the DSE, 239 advanced, 95 declined, and 51 remained the same.

At the Chittagong Stock Exchange, turnover slightly declined to Tk47.3 crore while all its indices registered a recovery on Tuesday.