Stocks rebound on BB’s assurance of policy support

After falling for two working days, the country’s stock market rose on Tuesday on the news of the central bank’s assurance of policy support to the capital market.

However, while all the indices rose in the Dhaka Stock Exchange (DSE), the share and unit prices of most of the companies participating in the transaction and turnover decreased.

On the day, the trading started with the rise of the index, but at one point it fell much more.

However, the market turned again following news that the Bangladesh Bank had sent a letter to the Bangladesh Securities and Exchange Commission (BSEC) saying that all kinds of policy support would be provided for the capital market.

While investors were busy balancing the equation on rumours and profit-taking, DSE’s overall index DSEX settled at almost the same level as the previous day at 12:41pm and was falling rapidly.

The turning point started from here in the apprehension of whether the price will fall for the third consecutive day or not. A 43-point rise from there in the next hour eased some of the pressure on investors.

At the end of the day, DSEX, the benchmark index of the Dhaka bourse increased by more than 39 points or 0.61 percent to 6,470.

Regarding the market situation, Ahmed Rashid Lali, the former president of DSE Brokers Association, thinks that the market is behaving quite normally.

He said, “There has been general profit taking in the market for the last two days. The capital market was continuously increasing since last July 31. Investors will take profits after a consecutive 500-point gain — this is normal.”

Among other indices, the shariah-based DSES rose by 14.24 points or 1.01 percent and the blue-chip DS-30 was up by 20.66 points or 0.90 percent.

The DSE had a turnover of Tk 1,315 crore, which is Tk 85 crore less than the previous session.

The pharmaceuticals and chemicals sector has played a major role behind this rise in transactions. The total turnover in this sector was Tk 216.9 crore, which is 17.04 percent of the total turnover.

The miscellaneous sector was at the second position with Tk 191.77 crore turnover, followed by engineering sector at Tk 145.11 crore.

On the day, shares of the 367 companies were traded on the day, of which 127 firms gained, 146 issues lost and 94 companies remained unchanged.

Shares of Orion Pharma were the most-traded by value on the DSE as its shares worth Tk 76.61 crore were traded on the day.

Beximco Limited, which was the second most-traded stock, had a turnover of Tk 75.48 crore followed by JHRML, BSC, Eastern Housing, Nahee Aluminum, BSCCL, LafargeHolcim, Bashundhara Paper and Orion Infusion.

Meanwhile, the overall index CASPI of the Chittagong Stock Exchange (CSE) increased over 84 points to 18,988 and securities worth Tk 30.47 crore were traded on the day.