Stocks extend rally after choppy trade

Dhaka stocks ended marginally higher, extending their rally for the fifth straight session on Sunday after a choppy trade.

The benchmark DSEX index rose only 18 points or 0.28 per cent to close at 6,259. The index showed some mixed activity during the initial hours of the trading session, eventually hitting a day’s high of 6,264 points during intraday trading. It, however, could not maintain its momentum and reversed almost all gains near the close of the session. The market hit its day’s low at 6,237.

Two other indices also closed slightly higher. The blue-chip index DS30 rose 6 points or 0.27 per cent to 2,226 while the DSES index, which represents Shariah-based companies, was up 6 points or 0.24 per cent to 1,372.

Investors heaved a sigh of relief due to the Bangladesh Bank’s attempt to curb the dollar price volatility along with the government’s announcement to adjust the fuel prices, dealers say.

Turnover decreased by 8.78 per cent to Tk 1,058 crore backed by the textile sector which accounted for 19.40 per cent of the total turnover.

Block trades contributed 0.6 per cent of the overall market turnover. Bangladesh Export Import Company was the most traded share with a turnover of Tk 96 crore.

“The equity indices of the Dhaka bourse extended their upward momentum from the previous week while investors’ participation in the large capitalized stocks pushed the core index to stay afloat in green terrain amid some volatility in the mid-session,” said EBL Securities in its post-market commentary.

However, the market participants showed mixed reactions as some cautious investors continued to offload their holdings due to a perceived bleak economic outlook, while bargain hunters took it as an opportunity to buy selective stocks at lucrative prices, which helped the optimistic investors outnumber the pessimistic investors across the bourse, it said.

Out of the 386 issues traded, 136 advanced, 143 declined, and 107 remained unchanged on the Dhaka bourse.