DSEX snaps losing streak as market cap reclaims Tk7 lakh crore

The country's premier bourse returned to positive territory today (27 July), snapping a three-day corrective spell as bargain hunters moved in to scoop up attractively valued shares.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) jumped 55 points, or 0.95%, to settle at 5,839. This rally not only ended the recent losing streak but also pushed the total market capitalisation back to the psychological milestone of Tk7 lakh crore, adding approximately Tk3,000 crore in a single day.

Market participation showed a healthy uptick, with daily turnover rising by 12% to reach Tk872 crore.

According to EBL Securities' daily market review, the recovery was driven by renewed buying as investors responded positively to a brief pause in retaliatory actions linked to the Middle East conflict.

Moreover, anticipation surrounding favourable financial results for the ongoing earnings season encouraged broad-based accumulation, providing a much-needed respite to investor sentiment.

While the market maintained a strong upward trajectory, analysts noted that persistent nationwide gas supply disruptions and lingering anxiety over proposed amendments to margin lending rules kept some investors in a cautious "wait-and-see" mode.

Sheltech Brokerage Limited observed that the day's performance was characterised by strong buying momentum from the opening bell, which lifted the benchmark index to an intraday high of 5,851 points. 

Although the market briefly consolidated in the middle of the session as investors booked profits, buying resumed during the final hour of trading, allowing the market to finish firmly in positive territory. Investors are now focusing on the finalisation of regulatory reforms and remaining Q4 earnings to gauge whether this recovery can last.

The market closed with broad-based gains, with 299 issues advancing, 53 declining and 39 remaining unchanged. The blue-chip DS30 index also gained 15 points to close at 2,201.

On the sectoral front, textiles accounted for the largest share of turnover at 22.8%, followed by pharmaceuticals at 12.4% and engineering at 11.1%. 

In terms of returns, the jute and mutual fund sectors led the gainers, both posting a 3.3% increase, while the travel and leisure segment gained 2.4%.

Individual stock performance featured several "junk" and small-cap stocks at the top of the gainers' list. Ring Shine Textile hit the 10% upper circuit breaker, followed closely by Deshbandhu Polymer, Far Chemical, and New Line Clothings. 

On the flip side, Nurani Dyeing emerged as the top loser, shedding 3.22%, followed by Queen South Textile and Yeakin Polymer. Heavyweight Beximco also saw a marginal price dip of 1.70%.

The positive sentiment was also reflected on the Chittagong Stock Exchange, where the broad CASPI index climbed 125 points to close at 15,604. Notably, the port city bourse witnessed a dramatic 223% surge in trading activity, with turnover reaching Tk16.66 crore.