DSEX snaps six-day losing streak, dull trade continues

The benchmark DSEX index managed to snap its six-day losing streak as some buying activity led by institutional investors helped the index return to the green territory.

The index shot up from the moment trading began due to institutional buying. However, the development was not enough to sustain the momentum. Investors remained concerned over the market direction. However, recovery was seen at the last minute, which helped the index finish positive. At the end of trading, the DSEX recorded an increase of 21 points or 0.31 per cent to settle at 6,795, scaling back from its 14-month low seen in the previous session.

The rally was led by travel, IT, non-banking financial institutions, banks, cement, insurers, textile and engineering.

The Shariah-based DSES index edged 1.5 points or 0.1 per cent up to 1,430 while the blue-chip DS30 index shed over 8 points or 0.34 per cent to 2,567.

The trading activity was feeble as the turnover stood at just over Tk 700 crore, down more than 15 per cent over the previous session and lowest since April 19, 2021, when the figure was Tk 697 crore. Bank, miscellaneous and Pharmaceuticals accounted for around 50 per cent of the total trade.

“The premier bourse of the country snapped six-day losing streak, backed by gains in bank stocks while turnover witnessed a downward trend as investors mostly remain on the sidelines owing to worries over the adverse impact of the new coronavirus variant on the country,” said EBL Securities in its market analysis.

Amid the depressed mood, newly listed ACME Pesticides Limited, a subsidiary of Sinha Group, also continued to rise since November 14 when it debuted. It hit the upper limit circuit at 10 per cent to Tk 30.90.

Another newly listed Sena Kalyan Insurance Company Limited operated by Bangladesh Armed Forces kept soaring since November 7 when it debuted on the stock exchanges. It gained 9.79 per cent to Tk 49.30.