Dhaka stocks end week in green as ICB loan spurs optimism

Dhaka stocks closed the week on a positive note, driven by the approval of a Tk3,000-crore loan for the Investment Corporation of Bangladesh (ICB) aimed at stabilising the capital market.

The loan is expected to enhance ICB's investment capacity and enable it to repay high-cost deposits, contributing to its positive performance. However, despite these gains, other indices on the main board experienced declines.

At the end of the week, the Dhaka Stock Exchange's prime index, DSEX, increased by 4 points to 5,197. Meanwhile, the blue-chip index, DS30, dropped by 4 points to 1,912, and the Shariah-compliant stocks index, DSES, fell by 3 points to 1,164. Conversely, the SME Index rose by 4 points to 1,096.

The weekly average turnover increased by 16.53% to Tk444 crore compared to the previous week, with the total turnover standing at Tk2,222 crore, up from Tk1,907 crore.

However, market capitalisation decreased by 0.10%, falling to Tk663,705 crore from Tk664,356 crore. Of the total scrips traded, 166 advanced, 178 declined, 40 remained unchanged, and 29 were not traded.

Among individual stocks, Dragon Sweater and Spinning led the weekly gainers with a 38.55% increase to Tk11.50, followed by Miracle Industries with a 28.41% rise to Tk22.60, The Dacca Dyeing & Manufacturing at 16.96%, Desh Garments at 16.38%, and ML Dyeing Limited at 13.58%.

On the other hand, Emerald Oil Industries topped the losers' list, declining by 17.83% to Tk25.80, followed by New Line Clothings at 15.46% and Bangladesh Industrial Finance Co Ltd at 14.29%.

In its weekly market commentary, EBL Securities noted that the benchmark index managed to close in positive territory this week. The revision of the interest rate on the Tk3,000-crore sovereign-guaranteed loan for ICB helped shift investor sentiment slightly toward positivity, creating opportunities for bargain hunters to secure short-term gains. However, ongoing political and macroeconomic instability continued to weigh on the market.

The market remained volatile throughout the week, with buyers and sellers actively participating and vying for control of market momentum. Although buyers ultimately pushed the benchmark index into gains, selling pressure persisted across the trading floor as many investors reduced their equity exposure due to lingering concerns over political and economic uncertainty. Additionally, news of significant fines for trade irregularities further dampened sentiment, leading to increased selling pressure during the final trading session.

Sector-wise, the banking sector accounted for the highest market activity at 14.0%, followed by the pharmaceutical sector at 13.7% and the textile sector at 11.6%. Overall sectoral performance was mixed, with the paper sector emerging as the top gainer, rising by 4.9%, while the jute sector was the biggest loser, declining by 2.7%.