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Stocks remain upbeat for 3rd consecutive week

Staff Correspondent
28 Jan 2023 00:00:00 | Update: 28 Jan 2023 09:02:29
Stocks remain upbeat for 3rd consecutive week

Dhaka stocks extended the gaining streak for the third consecutive week as investors’ optimism grew to put fresh funds in some sector-specific issues ahead of the upcoming quarterly earnings disclosures.

Investors, mainly the bargain hunters, were seen throughout the week to take fresh positions in those securities which were perceived to make better performance in the upcoming quarter.

The market, however, faced a huge sell pressure from investors, mainly the cautious ones, owing to concerns over dismal financial corporate performance due to recent macroeconomic headwinds, including a record hike in fuel and energy prices.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), the country’s premier bourse, added 30 points or 0.5 per cent, to settle at 6,296 at the end of this week.

On the other hand, the DS30, the blue-chip index, gained 22 points to 2,230, and the DSES, the Shariah-based index, rose 6 points to 1,374 this week. Investors’ participation in the market, however, declined by 20.8 per cent, with the average DSE turnover standing at Tk 610 crore this week, against Tk 770 crore in the previous week.

The market maintained its upbeat momentum this week riding on investors’ spree to take bets in selective issues for quick-gain opportunities amid the ongoing macroeconomic adversities, said EBL Securities, a stockbroker.

Investors, however, remained mostly active in the IT sector, with the sector topping the DSE turnover chart with a contribution of 18.2 per cent, followed by the general insurance (15.0 per cent), and the life insurance (12.9 per cent).

The market performed five sessions this this week with the DSE started the week on a negative note on Sunday.

It turned positive on Monday and sustained the trend until the end of the week.

Financial sectors posted mixed performance this week. Of them, the general insurance booked the highest gain of 2.87 per cent, followed by life insurance (2.43 per cent), and NBFI (0.34 per cent).

On the other hand, the bank sector experienced the highest loss of 0.12 per cent followed by the mutual fund (0.08 per cent).

Among the non-financial sectors, the pharmaceutical booked the highest gain of 0.48 per cent followed by food & allied (0.05 per cent), and engineering (0.03 per cent).

The market momentum shifted to particular sectors this week, but at the same time the recent hike in fuel and energy prices induced cautious investors to offload their holdings, causing the DSE’s benchmark index rising on a slight scale, according to stockbrokers.