Dhaka bourse recovers ground on selective buying despite Mideast concerns

The capital bourse returned to positive territory today as opportunistic investors stepped in for bargain hunting, seeking undervalued stocks after the previous session's decline. 

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) rose by 24 points to close at 5,254, signalling a cautious recovery amidst an evolving global geopolitical landscape. 

Market insiders said while the market displayed resilience, participants remained intently focused on the ongoing developments regarding ceasefire negotiations in the Middle East conflict, which continues to influence broader investor sentiment.

The day's trading session was characterised by range-bound movement, with active participation on both the buying and selling sides. However, buying momentum ultimately prevailed, leading to a broad-based price appreciation across the majority of the traded scripts, they continued.

According to the daily market review by EBL Securities, the market's upward trajectory was tempered by cautious selling in certain large-cap stocks, which prevented a more significant rally. 

The blue-chip DS30 index followed the benchmark's lead, inching up by 3 points to settle the day at 1,984.

Market participation showed signs of improvement as total turnover at the DSE surged by 5% to reach Tk836 crore, compared to the previous session. 

The market breadth also remained strongly positive, with 239 issues advancing, 90 declining, and 64 remaining unchanged out of the 393 securities traded. 

Key index pullers that contributed to the day's gains included Beximco Pharmaceuticals, BRAC Bank, Beacon Pharmaceuticals, Best Holdings, and Asiatic Laboratories.

On the sectoral front, the engineering sector continued to dominate market activity, accounting for 21.2% of the total turnover. This was followed by the pharmaceutical sector with an 11.0% share and the general insurance sector at 10.7%. 

In terms of returns, the ceramic sector led the gainers with a 3.4% increase, followed by the travel and information technology sectors, which exhibited returns of 2.9% and 1.6%, respectively.

On the other hand, the banking sector saw a marginal correction of 0.3%, while the cement and food sectors also experienced slight declines.

Individual stock performance saw Coppertech Industries Limited topping the gainers' list with a 10% price hike, followed closely by Mir Akhter Hossain Ltd at 9.90%. Other notable gainers included Meghna Pet, National Polymer, and Prime Finance First Mutual Fund. 

Conversely, SEML IBBL Shariah Fund emerged as the top loser, shedding 3.22% of its value, followed by Bank Asia and CAPM BDBL Mutual Fund. 

In terms of liquidity, Khan Brothers PP Woven Bag emerged as the turnover leader, with City Bank, Acme Pesticides, Lovello Ice-cream, and Mir Akhter Hossain Ltd also seeing significant trading volume.

The bullish sentiment was mirrored at the Chittagong Stock Exchange where the key indices also posted gains. The CSCX inched up by 12 points to reach 9,038, while the CASPI rose by 23 points to close at 14,756. 

However, unlike the premier bourse, the port city exchange witnessed a significant 41% drop in turnover, which stood at Tk24 crore.