Stocks rebounded yesterday on buying binge spurred by mainly government’s indication to cut tax on all non-RMG exportable goods.
The rally was led by particularly financials and manufacturing stocks that helped market pull back.
After two consecutive sessions of losses, the benchmark index DSEX gained 33 points or 0.8% to close at 4,498, recovering from its previous session’s 10-month low.
Shariah Index DSES rose 11 points or 1% to 979. The blue-chip comprising DS30 was up 17 points or 1% to end at 1,607. Chittagong Stock Exchange Selective Category Index, CSCX, closed at 8,766 with a rise of 67 points.
Lacklustre trading continued at the bourses despite slight increase in turnover to Tk300 crore at the Dhaka Stock Exchange. Lanka Bangla Securities in its daily market analysis said stocks rebounded as buyers came back to the trading floor.
“Only piece of news which might have impact on capital market is extension of tax waiver on export of apparel industry to all non-RMG goods as part of the incentive package for the industries made loss during the political unrest.”
Banks – the market bellwether – edged higher after dismal performance over the last few sessions. Pharmaceuticals gained more than 2%, driven by Square Pharmaceuticals – the second largest cap stock in the market – rose over 4%.
Telecommunications, fuel and power, food and allied and textile sector ended in positive territory. However, non-banking financial institutions closed in red.
ILDC Investments said with last session displaying larger shed-offs compared to previous few sessions, the bourse observed a bounce over some natural buy pressure, mostly from “bargain hunters.”
“Since investors did not have perfect confirmation of the reversal, fresh fund injections were not so much active, leading the turnover lower,” it said.
Zenith Investment said market took a recess from its ongoing correction phase and gracefully closed in the positive territory. “However, this type of short term recovery has always been observed, at least once in every week, which does not define any trend.”
Square Pharmaceuticals witnessed highest volume of trade with shares worth nearly almost Tk223 crore changing hands, making up 4.4% of the total DSE turnover.
It was followed by Bangladesh Shipping Corporation, Lafarge Surma Cement, Emeral Oil Industries, Grameenphone and Familytex and Padma Oil.
Source: Dhaka Tribune