Banking stocks spark modest rebound as DSEX ends losing streak

Banking sector stocks helped the benchmark index stage a modest recovery today (6 April), as the Dhaka Stock Exchange (DSE) returned to positive territory after two consecutive sessions of losses, despite lingering investor caution.

The DSEX, the prime index of the bourse, rose by 10 points or 0.2% to close at 5,122, snapping its recent downturn, while the blue-chip DS30 index gained 9 points to settle at 1,954. Market activity, however, remained subdued as turnover declined by 8% to Tk470 crore, reflecting continued uncertainty among investors.

Key banking stocks, including BRAC Bank, Prime Bank, National Bank and City Bank played a pivotal role in lifting the index, offsetting broader market weakness where declining issues outnumbered gainers. A total of 149 stocks advanced, while 172 declined and 68 remained unchanged.

According to EBL Securities, the market edged back into positive territory as opportunistic investors engaged in bargain hunting following recent sharp corrections. However, sentiment remained fragile as participants closely monitored geopolitical tensions in the Middle East alongside unresolved domestic concerns, including the ongoing fuel crisis and uncertainty surrounding government austerity measures.

The session began on a strong note, with the index gaining nearly 75 points within the first half hour of trading, driven by early buying interest. However, the initial optimism faded as selling pressure emerged later in the day, eroding much of the gains and pulling the market closer to flat territory before a slight recovery at the close.

Sector-wise, pharmaceuticals dominated turnover, accounting for 15.1% of total transactions, followed by engineering at 13.8% and general insurance at 10.4%. The overall market displayed mixed performance, with cement, mutual funds and banking sectors posting modest gains, while IT, jute and telecom sectors faced declines.

Among the most traded stocks were Dominage Steel, Acme Pesticides, Summit Alliance Port, Khan Brothers PP Woven Bag and Techno Drugs, indicating continued interest in selective scrips.

On the gainers' side, Bangladesh Autocars, Dominage Steel and Familytex posted notable advances, while Trust Bank First Mutual Fund and Tung Hai Knitting also saw strong price appreciation.

Conversely, financial sector stocks remained under pressure, with Prime Finance, Pioneer Insurance, Fareast Finance, Peoples Leasing and FAS Finance emerging as the top losers.

Meanwhile, the Chittagong Stock Exchange also ended the day in positive territory, although its key indices showed marginal movements, reflecting a similarly cautious sentiment among investors in the port city bourse.