Stocks close flat after Tuesday’s bounce back
During the mid-session, most sectoral stocks faced a mild correction since investors were not confident enough to pour fresh funds into stocks
Following a sharp bounceback on Tuesday, indices at both Dhaka and Chattogram bourses closed flat on Wednesday as investors were cautiously bargaining for most stocks.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), shedding 570 points in ten sessions, gained back 120 points on Tuesday and the market opened with an enthusiastic note on Wednesday, with the banking sector dominating the trading board.
But during the mid-session, most sectoral stocks faced a mild correction since investors were not confident enough to pour fresh funds into stocks amid the recent volatility, observed EBL Securities analysts.
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However, companies that are posting earnings improvement seem to have better-attracted investors over the session.
The DSEX closed at 7,012 against the opening at 7,006 and the intraday peak of 7,065 points.
Finally, the bank and general insurance sectors' market capitalisation increased by 2.3% and 4%, respectively.
Paper and printing, tannery, cement, mutual funds, services, travel, and telecommunication sectors closed the session higher to add to their market capitalisation.
On the other hand, food, IT, non-bank financial institutions absorbed the maximum corrections in the sectoral table.
Pharmaceuticals, engineering, fuel, and power sectors also closed moderately lower as some stocks from these sectors faced correction and the others closed almost flat.
Unlike the previous session, investors were better participating in buying and selling on Wednesday and the DSE turnover increased to over Tk1,497 crore which was 7.96% higher than the previous session.
Over the recent weeks, daily turnover at the DSE has fallen below Tk1,500 crore, which was above Tk2,000 crore in most sessions a month earlier.
Banking stocks contributed a maximum of 18.70% to the daily turnover in the country's premier bourse, while pharmaceuticals and miscellaneous sectors followed banks.
Despite the intraday corrections before close, most stocks ended the day more or less higher than the previous close.
Out of the 375 issues traded at the Dhaka bourse, 180 advanced, 166 declined, and 29 remained unchanged.
The port city bourse, Chattogram Stock Exchange (CSE), also settled in green terrain amid an intraday correction.
Doubling in 15 months till the end of September this year, stock market indices had faced a huge selloff since October 10 amid profit booking pressures.
Rev: Moin
