Stocks bounce back after dip amid US strikes on Iran
A day after suffering a sharp fall triggered by rising tensions in the Middle East following US airstrikes on Iran, the Dhaka Stock Exchange (DSE) bounced back today, with the DSEX gaining 17 points alongside price gains in most stocks.
On Sunday, panic-driven sell-offs amid fears of further capital erosion dragged the DSEX down by 76.80 points. However, investor sentiment improved, with many seeing opportunities in stocks that had become undervalued due to the prolonged market downturn.
According to DSE data, prices of 220 scrips advanced on the day, while 104 declined and 77 remained unchanged.
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The DSEX closed at 4,695 points. The Shariah-compliant DSES index rose by 7.29 points to 1,026, and the blue-chip DS30 index gained 4.91 points to settle at 1,763.
Market turnover, an important indicator of trading activity, edged up to Tk276.53 crore from Tk271.71 crore in the previous session.
EBL Securities, in its daily market commentary, said the benchmark index of the DSE logged a moderate recovery after enduring a sharp sell-off in the previous session amid heightened geopolitical tensions in the Middle East, as opportunistic investors sought to capitalise on scrips that were already trading at attractive valuations owing to the protracted bearish spells in the market.
The market began the trading session by witnessing buying interests across the trading floor. Despite sellers attempting to assert their dominance mid-way through the session, buyers ultimately managed to withstand the selling pressure, allowing the benchmark index to close in positive territory, the commentary reads.
On the sectoral front, food issues exerted the highest by 19.3% in total turnover, followed by banks with 14.4% and pharma with 11.3%.
Rahim Textile topped the gainers' list with a 9.96% rise to Tk113.7 per share, followed by Rahima Food Corporation with a 9.94% gain to Tk82.9 and Desh Garments with 9.91% to Tk102.
On the other end, First Finance was the day's top loser, dropping 6.26% to Tk3. Renwick Jajneswar & Co followed, falling 5.50% to Tk603, and Pacific Denims lost 5.45% to Tk5.20.
The port city bourse, Chittagong Stock Exchange (CSE), also settled on a positive zone. The CSCX and CASPI indices rose by 13.0 and 12.6 points, respectively.
