Stocks snap nine-day losing streak after mid-session rebound

Infographic: TBS

The Dhaka Stock Exchange (DSE) saw a turnaround today (27 April) as its benchmark DSEX index rose 22 points to close at 4,995, ending a nine-day losing streak. 

The blue-chip DS30 index also gained 7 points, settling at 1,852.

Of the traded issues, 235 advanced, 99 declined, and 63 remained unchanged.

Market analysts noted that although the market extended its continuous free fall till the mid-session, with the broad index plunging further by 57 points, bargain hunters soon emerged to rescue the ailing market, which helped it close in positive territory after nine consecutive sessions of prolonged downturn.

Insiders reported that sentiment shifted abruptly around 12:30pm following reports that the Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondoker Rashed Maqsood was pressured by the government to resign.

Rumours of his impending exit circulated, and by afternoon, reports confirmed he had left the commission office. The news sparked a swift recovery, pulling the market into positive territory.

In its daily market review, EBL Securities said the core index of the capital market, DSEX, managed a modest rebound after several sessions of heavy selloffs, closing slightly higher. 

Investor sentiment turned positive after the BSEC announced liquidity relief measures for intermediaries this year, particularly a relaxation of the negative equity provisions to ease pressure on them, it added.

The top-tier firm further said the market recovery, however, may lack strong momentum, and its sustainability remains uncertain without a more decisive catalyst for the country's capital market.

Meanwhile, the trading activities remained stagnant, with total turnover in DSE being low at Tk340 crore.

On the sectoral front, food issues exerted the highest turnover, contributing over 14% to the DSE turnover, followed by banking, and fuel and power sectors. 

Most sectors ended the day in positive territory, with paper, ceramics, and life insurance stocks posting the highest gains. Conversely, telecom, jute, and food sectors exerted the most corrections.

Bashundhara Paper Mills emerged as the day's top gainer, with its share price surging 10%, followed by Khulna Printing and Packaging and S Alam Cold Rolled Steels. Standard Ceramic Industries was the worst performer of the day.

Meanwhile, the Chittagong Stock Exchange (CSE) closed in negative territory yesterday. Its general index (CSCX) dropped 65 points to 8,459, while the all-share price index (CASPI) fell 96 points to 13,860.