DSEX keeps rising amid volatility

The benchmark DSEX index continued to maintain a smart recovery to recoup some of its losses after one of the worst weeks in recent months.

Following a strong start in the morning on Thursday, the market stayed upbeat and reached an intraday high of 6,490. But as the days progressed, it lost the momentum and closed at 6,451, gaining 18 points or 0.28 per cent. With the rise, the index extended rally for the sixth straight session.

“The recovery in the market is mainly due to the trigger of stop losses aided by some regulatory measures and doesn’t seem to be sustainable,” said an analyst at a top brokerage firm.

“Investors may remain cautious due to worries stemming from the macroeconomic front and take this opportunity to book their short term positions,” he added.

The Thursday’s main market pullers included British American Tobacco Bangladesh Company, Robi, Square Pharmaceuticals, National Life Insurance, Pubali Bank and RAK Ceramics.

Rise in insurers (1.2 per cent), ceramics (2.64 per cent), IT ( 2.74 per cent), engineering ( 0.16 per cent) and financial institution ( 0.15 per cent) sectors lifted the key index.

The market breadth remained marginally positive as out of 380 issues traded, 179 closed in green, 146 in red and 55 remained unchanged.

“Dhaka stocks ended higher attributed to the positive sentiment of investors while expectations of market-friendly policies in fiscal 2022-23 kept them active in the potential sectors,” said the EBL Securities in a note

“Market increased owing to binge buying, fuelled by widespread investor engagement as the circuit breaker’s lower limit bolstered investor confidence,” it added.

Participation increased significantly as the turnover stood at Tk 875 crore, up 17.8 per cent over the previous session, backed by pharmaceuticals (14.3 per cent), textile (13.6 per cent) and miscellaneous (12.6 per cent).

The port city bourse, CSE, also, settled in green terrain. The selected indices (CSCX) and All Share Price Index (CASPI) have advanced by 42.0 and 70.2 points respectively.