Stocks rebound after 10-day fall

Following a continuous sharp fall over 10 days, Dhaka and Chattogram stocks rebounded on Tuesday as investors found many shares at bargain prices.

DSEX, the broad-based benchmark of the Dhaka Stock Exchange (DSE), regained 120 points over the session, exactly as much as it had lost on Monday.

Gaining 1.75% over the session, the index again closed above 7,006.

Investors' panic on Monday appeared to be eased in the following session as soon as they saw stock prices going up and many began to take fresh positions in stocks, especially which lost too much price during the recent fall.

Nearly three dozen companies, mostly mid-cap ones, closed the day near the top of the circuit breaker which does not allow price to go above a certain level in a single session.

In the morning, confident investors began picking some of their preferred stocks they considered cheaper now, said Abdullah Al Mamun, a brokerage official at Al Muntaha Securities.

But some immediate selling pressure began to drag the indices down again.

At 11.45am, buyers came back with renewed energy and the indices sharply rose that lasted up to the end of the session, he said.

As a large number of investors were perplexed amid the sharp volatility, trading turnover declined 5.68% on Tuesday.

DSE registered Tk1,387 crore in turnover on Tuesday, which was Tk1,470 crore on Monday.

In the previous session, over 300 scrips declined in the DSE, while 340 advanced on Tuesday against a decline of 22 and the price of 14 remained unchanged.

All the sectors except telecommunication gained market capitalisation, while services and real estate led the sectoral gain table with 7.9% increase in total market capitalisation.

Market capitalization is the current total price of a company's all shares.

Travel and leisure, jute and textile followed service and real estate in the table of strong rebound over the session as each of them gained more than 5% in market capitalization.
Bank, tannery and pharmaceuticals gained by less than 1% on average.

On the buyers' day Grameenphone was the top loser with a slight 1.7% decline.

Bank, pharmaceuticals, life insurance, miscellaneous textile and engineering led the sectoral turnover contribution table.

DS30, the blue-chip index of the capital city bourse, gained 0.64% to 2,661 as large cap stocks turned less volatile in the last week.

The Shariah Index DSES seems to have recovered less on Tuesday as it fell sharply recently but only gained 1.15% to close at 1,482.

Port city bourse Chittagong Stock Exchange also followed DSE in terms of gain in indices and drop in daily turnover.