Square Pharma, Islami Bank pull DSEX from downfall
The DSEX, the broad-based index of the bourse, advanced by 8.4 points or 0.2% to close at 5,081 points, compared to 5,072 points in the previous trading session.
The benchmark index of the Dhaka Stock Exchange (DSE) bounced back yesterday following three consecutive sessions of losses. Selective buying in key heavyweight stocks helped the market close marginally higher, even as investor sentiment remained cautious.
The DSEX, the broad-based index of the bourse, advanced by 8.4 points or 0.2% to close at 5,081 points, compared to 5,072 points in the previous trading session.
Out of the traded stocks, 116 issues advanced, while 189 declined and 85 remained unchanged.
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Market analysts said the modest recovery was driven by bargain hunting in fundamentally strong large-cap stocks, even as investors remained cautious ahead of the national election and upcoming corporate earnings announcements.
According to EBL Securities' daily market review, major index heavyweights including Square Pharmaceuticals, Islami Bank Bangladesh, Beximco Pharmaceuticals, Grameenphone and Walton played a key role in lifting the benchmark index. Gains in these stocks helped offset losses in several other sectors and prevented the market from extending its recent downturn.
EBL Securities noted that the benchmark index edged higher as investors selectively accumulated beaten-down stocks, although overall market sentiment remained cautious. The session witnessed mild volatility, with investors active on both the buying and selling sides throughout the day.
However, buyers eventually gained a slight upper hand, fueled by selective accumulation in large-cap stocks, helping the index close in positive territory.
Despite the index gain, trading activity weakened compared to the previous session. Total turnover on the Dhaka bourse declined by 6.5% to Tk490 crore, indicating that many investors preferred to stay on the sidelines amid prevailing uncertainty.
Most sectors posted mixed performances during the session. Travel sector stocks faced the highest correction, shedding 0.8%, while financial institutions and mutual funds also declined by 0.7% and 0.6% respectively. On the positive side, life insurance emerged as the top gainer with a 3.3% rise, followed by jute, which gained 2.1%, and the telecommunication sector, which advanced 1.0%.
