Earnings optimism lifts DSEX near 5,900 despite gas supply shortages
The DSEX, the key index of the Dhaka bourse, gained 91 points to close at 5,895, recovering from the sharp correction recorded in the previous week.
The Dhaka Stock Exchange (DSE) rebounded last week as the benchmark DSEX climbed 1.57%, driven by renewed investor optimism over the ongoing quarterly earnings season despite lingering concerns over gas supply disruptions and regulatory uncertainty.
The DSEX, the key index of the Dhaka bourse, gained 91 points to close at 5,895, recovering from the sharp correction recorded in the previous week. The blue-chip DS30 index also advanced 24 points to end the week at 2,217.
According to EBL Securities' weekly market review, the rebound was supported by a temporary pause in retaliatory actions in the Middle East conflict, which revived investors' risk appetite.
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Market participants also accumulated shares of companies expected to post strong quarterly financial results, resulting in broad-based buying across the market.
The benchmark index briefly crossed the 5,900-point mark during the week for the first time in nearly a fortnight before intraday profit-taking trimmed some of the gains.
However, concerns over ongoing gas supply disruptions and uncertainty over new margin lending rules kept investors cautious.
Despite these headwinds, market breadth remained strong, with gainers significantly outnumbering losers. Of the traded issues, 264 advanced while only 89 declined.
Trading activity edged lower during the week, with average daily turnover slipping slightly to Tk1,060 crore.
Among sectors, textiles dominated turnover, accounting for 22.5% of total weekly trading, followed by pharmaceuticals with 12% and engineering with 10.8%.
The general insurance sector emerged as the week's best performer, posting an 8% gain. Food and textile sectors followed with returns of 6.2% and 3.9%, respectively. Meanwhile, cement, paper and telecommunication stocks posted marginal losses as investors rotated their portfolios.
Among individual stocks, Exim Bank First Mutual Fund topped the gainers' chart with a 36.7% surge, followed by FAS Finance and Saiham Textile.
On the losing side, Renwick Jajneswar fell 12.8%, while Meghna Pet also recorded a notable decline during the week.
