Large-cap stocks lift benchmarks after two-day slide
Most stocks faced selling pressure from quick profit-seekers following the recent rally after the 5 August fall of the Sheikh Hasina government
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Despite selling pressure from day traders, the prime index of the Dhaka Stock Exchange (DSE) snapped its two-day losing streak today, with large-cap stocks driving the recovery.
The DSEX benchmark index ended 84 points higher at 5,952, while the blue-chip index DS30 jumped 63 points to reach 2,197.
Most stocks faced selling pressure from quick profit-seekers following the recent rally after the 5 August fall of the Sheikh Hasina government.
At the end of the session, 239 scrips declined, 116 advanced, and 42 remained unchanged.
EBL Securities said in its daily market review, the benchmark index of the Dhaka bourse returned to green territory following see-saw trading activity throughout the session as investors showed buying interest in particular large-cap stocks that they deemed lucrative, although the majority of the scrips extended corrections.
Market volatility persisted throughout the session as sellers continued their dominance due to the weakening strength of the market's momentum, it added.
However, the indices propelled up in the late session owing to buy dominance in selective large-cap issues, although overall market sentiment remained subdued, as noted in the EBL Securities daily market review.
Investors were in a buying mood, focusing on large-cap stocks to build portfolios with fundamentally sound stocks, leading to a surge in these stocks.
According to EBL Securities, BRAC Bank, Square Pharmaceuticals, Grameenphone, and BAT Bangladesh played key roles in lifting the index, contributing around 66 points.
Turnover – a crucial market indicator – increased by 23%, reaching Tk1,243 crore for the day.
Several top brokerage firm executives mentioned that the securities regulator is facing challenges after its chairman and two commissioners resigned following the change in government.
Although the new government appointed economist Masrur Reaz as chairman, many officials at the regulator have raised concerns about his alleged affiliation with influential figures in the deposed Awami League government, particularly Salman F Rahman.
Investors are now waiting to see who will chair the Bangladesh Securities and Exchange Commission, which has made them hesitant to invest in the market, they added.
On the sectoral front, bank shares contributed the most to total turnover at 29.9%, followed by telecom at 16.1% and pharmaceuticals at 14.8%. Grameenphone topped the turnover chart with shares worth Tk 159 crore traded, followed by BRAC Bank at Tk72 crore and United Commercial Bank at Tk55 crore.
Sectors displayed mixed returns, with telecom, food, and non-bank financial institutions showing the most positive returns on the bourse, while jute, paper, and textiles experienced the most corrections.
The non-bank financial institution sector led the top gainers' list, with eight companies making it to the table. United Finance topped the list with a 9.92% gain, followed by Islamic Finance, Phoenix Finance, and Midas Finance.
Islami Bank was the worst performer, with its share price falling by 3.32%, followed by Orion Pharma and Libra Infusion.
The port city bourse, Chittagong Stock Exchange, also settled on positive ground. The selected index, CSCX, rose by 82 points to 10,325, while the all-share price index, CASPI, surged by 132 points to 17,142.