Fresh funds pushes DSEX up to 3-month high

The Dhaka Stock Exchange (DSE) Limited’s key index, the DSEX, settled in positive territory this week, reaching a three-month high, as investors continued putting fresh funds into sector-specific issues in expectation of quick gains.

The DSEX gained 17.77 points and closed the week’s trading at 6,290.20 points while the blue-chip index, DS30, gained 0.93 points and stood at 2,195.29. The Shariah-based index, DSES, lost 3.75 points and stood at 1,368.25 points.

However, investors’ participation in the market declined this week, decreasing by 7 per cent to Tk 736 crore compared to the previous week’s Tk 791 crore.

Investors were mostly active in the general insurance sector (12.3 per cent), followed by the food sector (11.2 per cent) and the life insurance sector (10.6 per cent). However, sectors ended mixed this week as the general insurance sector (11 per cent) declared as the highest gainer and the Jute sector (6.1 per cent) as the week’s worst sufferer.

The market performed a total of five trading sessions this week. The bourse started on a negative note of 0.14 per cent on Sunday. It remained negative as on Monday by 0.05 per cent but recovered on Tuesday by 0.27 per cent and remained positive on Wednesday by 0.06 per cent. At this week’s last session on Thursday, the market closed on a positive note by 0.14 per cent.

EBL Securities said in its weekly market review that some of the non-life insurance companies have posted better earnings growth with decent cash dividends for the latest fiscal year as well as for the recently ended quarter.

“This enticed some investors to rotate their funds from the recently rallied stocks to the insurance sector and led the market to end in gaining territory this week,” it said.

Also, BRAC EPL in its weekly market review said, financial sectors posted mixed performance this week. General insurance booked the highest gain of 10.75 per cent followed by life insurance (5.19 per cent), and mutual funds (0.09 per cent). However, bank experienced the highest loss (0.69 per cent) followed by NBFI (0.00 per cent).

Out of the 402 issues traded, 109 advanced, 74 declined, and 205 remained unchanged on the Dhaka bourse this week. Trust Islami Life Insurance was the week’s top gainer, soaring 60 per cent while National Tea Company Ltd was the week’s worst loser, losing 10 per cent.

The port city bourse, Chittagong Stock Exchange, also showed a green trend this week. Its prime index, CSCX, fell by 0.18 per cent to 11,094 points. Out of the 308 issues traded, 88 advanced, 65 declined, and 155 remained unchanged on the CSE for the week.