DSE snaps 3-day losing streak on buoyant IT stocks

Dhaka stocks snapped its three-day losing streak on Wednesday after investors showed their buying binge in sector-specific issues in hope of some returns amid bleak quarterly corporate earnings caused by macroeconomic issues.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), added 10.1 points to settle at 6,277 against 6,267 in the previous trading session.

Among other indices, the DS30, the blue-chip index, rose 4.36 points or 0.19 per cent to 2,223, and the DSES, the Shariah-based index, gained 3.96 points or 0.29 per cent to 1,369.

The buoyant IT sector helped the core index of the prime bourse stay afloat as most investors remained concentrated in the sector aiming to book better gains.

The market witnessed volatility, with the majority of securities extending their correction mode, while a last-hour buying spree on selective issues offered a marginal recovery to the market, allowing the core index to stay afloat, said EBL Securities, a stockbroker, in its daily market review.

Investors continued their portfolio rebalancing in response to the earnings disclosures of the listed companies for the latest quarter, it added.

Meanwhile, the capital bourse witnessed a slight increase in participation, with the DSE turnover inching up by 1.3 per cent to Tk 580 crore against Tk 573 crore in the previous session.

The IT sector topped the turnover chart with a contribution of 28.3 per cent to the total turnover of the prime bourse, followed by the pharma (11.5 per cent) and services (7.9 per cent).

Most sectors displayed positive returns in the Dhaka bourse, with the IT posting the highest gain of 5.1 per cent, followed by ceramic (2.0 per cent), and paper (1.4 per cent).

On the other hand, the jute sector faced the highest correction of 1.0 per cent, followed by life insurance (1.0 per cent) and tannery (0.8 per cent).

Out of the 391 issues traded, 40 advanced, 126 declined, and 225 remained unchanged.

The port city bourse, CSE, also settled on green terrain, with its two major indices – the selected indices (CSCX), and the all-share price index (CASPI) – rising by 16.1 points and 26.4 points respectively.