Home ›› Stocks


Stocks buoyant as investors keep chasing selective scrips

Staff Correspondent
22 Jul 2023 20:53:00 | Update: 22 Jul 2023 21:07:13
Stocks buoyant as investors keep chasing selective scrips

Despite trading volatility, Dhaka stocks secured a significant gain this week, thanks to opportunist investors who took fresh bets into sector-specific lucrative stocks amid corporate earnings declarations for the June quarter.

Although cautious investors continued profit booking, it could not pull down the key index by the weekend because investors became buoyant after the recent government approval to the introduction of bancassurance in the country.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), gained 24.5 points, or 0.4 per cent, to settle at 6,366.

The average market turnover jumped by 11.2 per cent to Tk 947 crore this week against the average tally of Tk 854 crore reported in the previous week.

The market opened on a highly positive note this week, with the benchmark index surging to an eight-month high, primarily fueled by the resurgence of some fundamental scripts, combined with the prolonged interest in trendy ones, according to the weekly market review of EBL Securities, a stockbroker.

 The initial gains in the first session, however, got eroded by two subsequent sessions of profit booking, while a partial recovery in the remaining sessions, primarily led by general insurance stocks, helped the market to settle in green territory.

The market performed five sessions this week, with the market starting the week on a positive note of 0.42 per cent on Sunday. It, however, turned negative on Monday and remained the same the following day.

Further, the market rose 0.24 per cent on Wednesday but again dipped Thursday with a correction of 0.01 per cent.

Investors were mostly active in food and allied sector as the sector contributed 18.0 per cent of the total weekly turnover of the prime bourse, followed by general insurance (10.5 per cent) and engineering sector (10.1 per cent).

According to EBL Securities, sectors exhibited mixed returns, with the general insurance sector posting the highest gain of 10.8 per cent, while the life insurance faced the highest correction of 1.9 per cent.

As per Brac-EPL Stock Brokerage, financial sectors posted mixed performance this week with the general insurance booking the highest gain of 10.80 per cent, followed by bank (0.36%), and mutual fund (0.05 per cent), while the life insurance experienced the highest loss of 1.94 per cent, followed by NBFI (0.07 per cent).

On the other hand, non-financial sectors posted mixed performance in the week, with the engineering booking the highest gain of 0.22 per cent, followed by pharmaceutical (0.02 per cent), and telecommunication (0.00 per cent), while the fuel and power experienced the highest loss of 0.19 per cent, followed by food and allied (0.07 per cent).

Janata Insurance Company rose 44.1 per cent to become the week’s top gainer, while Rupali Life Insurance was the worst sufferer with a loss of 27.4 per cent.