Daily average turnover on DSE rises by over 9% last week
The daily average turnover on the Dhaka Stock Exchange (DSE) increased by 9.15% to Tk413 crore last week compared to the previous week.
The total turnover rose to Tk2,063 crore at the end of the week, up from Tk1,890 crore a week ago.
Market capitalisation over the week also increased by 0.56%, to Tk6,60,587 crore from Tk6,56,940 crore.
The DSE indices closed the week on a positive note, driven by cautious investors seeking opportunities in undervalued yet promising stocks, particularly within the manufacturing sector. This occurred despite the ongoing political and economic uncertainty.
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The DSE indices closed the week on a positive note, driven by cautious investors seeking opportunities in undervalued yet promising stocks, particularly in the manufacturing sector, despite ongoing political and economic uncertainty.
However, due to these uncertainties, many investors remain hesitant to engage in the market. While there is a sense of optimism, a significant portion of the investor community continues to hold back from active participation. According to market insiders, if investor participation gradually increases, it could lead to short-term gains within a brief period.
At the end of the week, the prime index, DSEX, increased by 32.61 points to 5,167. Meanwhile, the blue-chip index, DS30, was up by 19 points to 1,913, the shariah-compliant stocks index, DSES, rose by 11 points to 1,162, and the DSE SME Index (DSMEX) advanced by 30 points to 1,094.
Of the 413 issues traded, 201 advanced, 150 declined and 46 remained unchanged while 16 were not traded.
Among individual stocks, Khulna Printing & Packaging led the weekly gainers with a 22.81% increase to Tk21, followed by Alltex Industries 18.49% to Tk14.10, Sonargaon Textiles 17.35%, Kohinoor Chemicals 14.27% and Monno Ceramic Industries 13.09%.
On the other hand, Power Grid Company topped the losers' list, declining by 21.46% to Tk31.10, followed by Associated Oxygen at 13.83%, Renwick Jajneswar at 11.54% and Oimex Electrode at 10.49%.
In its weekly market commentary, EBL Securities noted that the benchmark index of the capital bourse rebounded into positive territory, driven by bargain hunters who anticipated short-term gains and selectively invested in promising stocks based on their expected earnings for the recently concluded quarter.
Additionally, the recent decline in 10-year government bond yields also instils growing investor optimism, EBL Securities said. The decrease in yield, driven by factors such as declining credit demand and recent liquidity injections, is likely attributed to expectations of lower future policy rates, it observed.
The expectation of a decline in policy rate has likely boosted investor confidence and encouraged investment in stocks for higher returns, leading to positive momentum in the market, EBL Securities said. However, sellers started to exert their influence in the latter part of the week, leading to a market correction in the last two sessions, it said.
Investors were mostly active in the pharma sector (17.6%), followed by the textile sector (12.8%) and the engineering sector (11.4%). Most of the sectors ended in green with the IT sector at 5.0% being the highest gainer.
The Chittagong Stock Exchange (CSE) also saw a positive week, with its selected index (CSCX) rising by 0.79% to settle at 8,797 points and the All Share Price Index (CASPI) increasing by 0.68% to settle at 14,449 points.
