Stocks snap four-day losing streak
Stocks rebounded Wednesday, snapping a four-day losing streak with improving turnover value as investors went for buying mood at available attractive prices of stocks.
Market analysts said after four session's fall over 174 points, many stocks came to a lucrative price level which encouraged investors to take fresh position anticipating short-term rally.
The market opened with a positive note and breaks through with strong momentum till the market closure. The prime index of the Dhaka Stock Exchange - DSEX crossed 4,700 points mark once again and ended at 4,749.23 points, gaining 77.66 points or 1.66 per cent.
The other two indices also posted hefty gains. The DS30 index, comprising blue chips went up by 31.30 points or 1.89 per cent to close at 1,687.01 points. The DSE Shariah Index (DSES) gained 20.39 points or 2.09 per cent to close at 993.92 points.
Supported by natural buying pressure, turnover on DSE improved to Tk 3.82 billion, registering 9.70 per cent increase over the previous session's turnover value of Tk 3.49 billion.
"Market broke its bearish spell, as optimism resurfaced," IDLC Investments said, in its daily market analysis.
The investors observed lucrative price advantage as DSEX lost 174 points from last week. This assisted in creating a natural re-bounce, pushing up DSEX by 78 points, the merchant bank said.
"Lucrative price to net asset value (NAV) ratio in mutual funds knocked investors' attention during the day's session. Consequently, seven mutual funds emerged in the top ten gainers list," the merchant bank added.
"Market reclaimed 4,700 points mark proudly after a week long correction in index," said LankaBangla Securities.
The benchmark index gained strong momentum with 1.66 per cent return supported largely by banking stocks and mutual funds, the stock broker said.
Buyers are clawing back in the market mostly keeping financial and power stocks in buying radar, the stock broker added.
"Stocks commenced with a positive note, and continued its momentum till the end of the trading day, as the market accommodates consolidation after the recent correction phase," said Zenith Investments.
