Stocks bounce back but worries remain
Stocks bounced back yesterday following three days of continuous decline but tensions continue steadily to run superior among investors due to the downward trend of the turnover.
DSEX, the benchmark index of the Dhaka STOCK MARKET (DSE), rose 122 tips, or 2.27 %, to 5,498 yesterday.
The market took a huge tumble over the last couple of days so if persons sell their shares, they'll incur losses, according to a stock broker.
"As a result, this discourages them to put on sales orders," he explained, adding that caused the industry to rise.
Besides, some investors began to buy again but the buying tendency is still comparatively low.
"Thus, the index rose according to lower turnover aswell," the share broker said.
Turnover, a significant indicator of the marketplace, dropped 13 % to Tk 683 crore yesterday.
"The lower turnover isn't an excellent sign for the market," he added.
Two weeks ago, turnover in the DSE ranged from Tk 1,300 crore to Tk 1,500 crore nonetheless it has now halved to Tk 700 crore normally, DSE data shows.
"There is nothing in the near future that can drown the index why the index was falling had not been clear to me," a good merchant banker said.
Moreover, there is most hope of a reduction in corporate tax for listed companies that could boost the index.
So, investors shouldn't sell their shares baffled today, the merchant banker said, adding that people should try to make long-term investments in well-performing companies.
"Bad decision from inventory shareholders intensifies the bearish style of our industry," he said.
Fu-Wang Ceramics topped the gainers' list, rising 10 per cent accompanied by Mir Akhter Hossain, Dominage Steel, Appollo Ispat and Midas Funding.
Beximco topped the turnover list with shares well worth Tk 87 crore changing hands accompanied by Beximco Pharmaceuticals, Robi Axiata, Uk American Tobacco Bangladesh, and LankaBangla Financing.
First Financing shed the most, falling 4.83 % followed by Prime Bank, Central Insurance, LR Global Mutual Fund One and Desh Garments.
At the DSE, 240 securities gained value, 17 declined, and 92 remained unchanged.
The port metropolis bourse also rose yesterday. CASPI, the overall index of the Chattogram STOCK MARKET, rose 399 details, or 2.57 %, to 16,919.
Among the 237 traded companies, 160 advanced, 28 fell and 49 remained the same.
