Stocks rebound after two weeks of decline

Shares in Dhaka rebounded last week after a two-week slump as some investors turned to buying stocks, especially those of small-cap companies.

DSEX, the main index of the Dhaka Stock Exchange, rose 0.89%, or 62.43 points, over the past week to close at 7,085.95 points on February 10, the last trading session of the week, having dropped 82 points in the previous two. weeks.

The market gained in four sessions during the five-session week as some investors bought stocks expecting a better trend in the market, market operators said.

After seeing a sluggish trend in most large-cap companies, investors turned to underperforming and small-cap companies for better returns in a short period of time, they said.

Share prices of Shyampur Sugar Mills, Zeal Bangla Sugar Mills, Tamijuddin Textile Mills, Bangladesh Monospool Paper Manufacturing Co Limited and Tosrifa Industries Limited led the gain chart during the week.

After witnessing significant price appreciation, stock prices of British American Tobacco, BEXIMCO, Bangladesh Building Systems, RAK Ceramics and Fareast Life Insurance plunged during the week.

EBL Securities, in its weekly market commentary, said: “Stock indices on the Dhaka Stock Exchange saw a positive week as most companies reported earnings growth which rejuvenated investor confidence.

“Investors have been focused on rebalancing their portfolios based on recent and upcoming earnings reports throughout the week,” he said.

Square Pharmaceuticals’ share price rose for the second week after the company announced that its earnings per share rose to Tk 5.24 in October-December 2021 from Tk 4.33 in the same period last year. ‘last year.

Of 388 issues traded, 235 advanced, 125 declined and 26 remained unchanged on the DSE floor.

Average stock prices in the general insurance, textiles, energy and non-banking financial institutions sectors rose 3.9%, 2.5%, 2.4% and 1.7% respectively.

The DS30 index composed of 30 large-cap companies rose 5.15 points to end at 2,597.49 points and the DSE Shariah index added 13.37 points to close at 1,517.62 points.

Average daily turnover, a crucial indicator of investor participation, increased by 2.94% to Taka 1,323.55 crore during the week from Taka 1,285.77 crore the previous week. .

Union Insurance Company Limited was the best performer of the week, posting a gain of 60%, while Queen South Textile Mills Limited was the worst loser, losing 11.46%.

Bangladesh Shipping Corporation topped the turnover list last week with its shares worth Tk 431.66 crore changing hands.

BEXIMCO, British American Tobacco Company, Orion Pharma, Fortune Shoes, SAIF Powertec, The ACME Laboratories, Bangladesh Building Systems, Bay Leasing & Investment and Islami Bank Bangladesh were the other revenue leaders for the week.

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