DSEX inches up on textile issues

Dhaka stocks ended mixed on Tuesday with the benchmark DSEX-100 index edging higher aided by the textile sector.

After an upward open, the index started to slip due to the selling pressure. However, a buying momentum on the textile issues towards the end of the session helped the index close marginally higher.

At close, the DSEX recorded an increase of 13 points or 0.18 per cent to settle at 7,032, breaking its two-day losing streak.

The Shariah-based DSES index witnessed fractional losses of 0.39 points or 0.02 per cent to 1,504 and the blue-chip index DS30 also saw a factional fall of 0.93 points or 0.03 per cent to 2,613.

The trading activity continued to decline as the turnover was down more than 8 per cent over the previous session to Tk 1,117 crore.

The market continued to succumb to the modest profit-booing selling pressure again taking a cue from concerns over the spike in virus cases, dealers say.

“The market remained under pressure due to the rising import cost and the number of new Covid-19 variant omicron cases in Bangladesh,” said a top broker.

On its first trading day, BD Thai Food & Beverage shares were frozen at the upper limit circuit at 10 per cent, making it the top gainer.

Square Textile also hit the upper limit circuit at 10 per cent ahead of its board meeting scheduled for January 31, 2022 when the company is expected to announce un-audited financial statements for the period ended December 31, 2021, among other issues.

Matin Spinning Mills was the third top gainer surging 9.91 per cent ahead of its board meeting scheduled for January 29, 2022.

“Dhaka stocks returned to the green territory, following a one-day break, as investors buying spree in sector-specific issues ahead of the forthcoming earning declarations helped indices to close higher,” said the EBL Securities in a note.

The market observed upward momentum from the beginning of the session, as many investors rushed to buy quick gaining textile scrips, however, most of the early gain faded away in the late session as some cautious investors decided to sell-offs shares amidst concerns over rising Covid cases in the country, it said.

The trade was concentrated mainly on the textile, miscellaneous and pharmaceutical sectors, which together accounted for more than 40 per cent of the total turnover.

The majority of the sectors displayed mixed performance, out of which financial institution (2.7 per cent), textile (2.5 per cent) and cement (1.5 per cent) gave the most positive returns while food (-1.3 per cent), life insurance (-1 per cent), and telecom (-0.8 per cent) observed the most corrections on the bourse.