DSEX, the key index of the Dhaka Stock Exchange (DSE), surged by 1.83 per cent this week as investors were confident in the market's upward trend and chose to increase their stakes in stable stocks, leading the broad index to close in positive territory once more.
Investor participation in the market also increased by 26.9 per cent to Tk 792 crore from the previous week’s Tk 624 crore.
DSEX gained 104.50 points and closed the week at 5,804.42 points. The blue-chip index, DS30, surged by 1.63 per cent and gained 34.12 points to close the week at 2,124.71 points.
The Shariah-based index, DSES, also rose by 1.82 per cent and gained 22.18 points to stand at 1,241.26 points at the end of the week.
The market, which performed four sessions during this week, started positively on Sunday (0.01 per cent) but turned negative on Tuesday (0.26 per cent). However, the market reversed to positive again on Wednesday (1.25 per cent) and ended the week positively on Thursday (0.83 per cent).
The capital market showed signs of recovery, with the benchmark index of the Dhaka bourse crossing the 5,800 mark again after two weeks as buyers continued their dominance across the trading floor owing to a slight rebound in investor sentiment, while some recent reformation attempts taken by the stock market regulator also worked as a catalyst to restore some investor confidence, according to the weekly market review of EBL Securities.
Buyers remained on the dominant side as opportunistic investors sought to take positions in particular scrips, which they deemed lucrative at the prevailing price levels, it said.
This week, the stock market showed signs of recovery as investors focused on blue-chip and large-cap stocks, anticipating favourable price movements amid ongoing financial sector reforms, according to the weekly market review of Royal Capital.
Following recent declines, undervalued stocks attracted renewed interest, sparking increased trading activity. Investors are optimistic as the market regulator implements reforms to restore confidence, including adjusting circuit breakers, enforcing timely dividend disbursements and enhancing international cooperation, it said.
Over the week, the price of 305 issues advanced and 60 issues declined. Fourteen sectors were bullish last week, of which, Insurance, Ceramic and Engineering were the top gainers while four sectors were the top losers.
This week, the most popular scrip was OLYMPIC based on price and turnover growth. The top gainer was KBBPPWBIL and the top loser was SONALIPAPR.
As the Bangladesh Securities and Exchange Commission is working relentlessly to support the liquidity of the market, the investors who are in wait-and-see mode should engage themselves more by participating continuously in the market to take it to a new level.
All considered the market may go bullish with higher trading activities for the upcoming week.
Thursday’s market scenario
On Thursday, DSEX gained 47 points and ended at 5,804, while the market turnover increased by Tk 65 crore to end the day’s session at Tk 963 crore.
The key index of the Dhaka bourse sustained the upbeat vibe, with buyers being dominant across the trading floor as recent reformation attempts taken by the stock market regulator have somewhat revived investor confidence to take positions in equities.
Despite the market opening slightly lower due to an initial sell pressure following the reinstatement of the regular circuit breaker for stocks, the market recovery resumed again riding on buyers’ increased participation that aided further price appreciation in the majority of stocks.
Market turnover on Thursday increased by 7.2 per cent to Tk 963 crore from the previous session’s Tk 898 crore.
Of the 398 scrips traded, 298 advanced, 67 declined and 32 remained unchanged at DSE.
BATBC topped the turnover chart. TUNGHAI was the top gainer while SPCL was the top loser.
One stock was traded at the floor price. In the block market, shares of Tk 30.8 crore were transacted, representing a turnover of 3.2 per cent.
The Chittagong Stock Exchange also settled on green terrain on Thursday. The selected indices, CSCX, and All Share Price Index, CASPI, advanced by 71.5 and 117.7 points, respectively.
