Dhaka stocks extend rally for third day
The Dhaka Stock Exchange (DSE), the country's premier bourse, continued its upward trajectory, extending its gaining streak for a third consecutive session following Sunday's sharp drop.
Market insiders said that easing geopolitical tensions, the recent approval of an IMF loan, and a rise in foreign exchange reserves to their highest level since August 2023 helped ease investors' concerns over economic uncertainty.
The benchmark DSEX index of the Dhaka bourse jumped by 49 points to reach 4,767, while the blue-chip DS30 added 18 points to settle at 1,790. Of the traded stocks, 295 advanced, 46 declined, and 59 remained unchanged. Turnover surged by 11% to Tk413 crore, compared to the previous session.
According to Shanta Securities' daily market review, the rally was largely driven by positive changes in the market cap of travel and leisure, paper and printing, and bank scrips amid negative changes in the market cap of miscellaneous and mutual fund scrips.
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Over the past three sessions, the DSEX has recovered 90 points after shedding 76 points on Sunday, when US airstrikes on Iranian nuclear sites intensified tensions over the Iran-Israel fight.
During the last three sessions, the market cap on the DSE jumped by around Tk8,500 crore to reach Tk6.57 lakh crore.
EBL Securities, in its daily market commentary, said the country's capital market extended its recovery for three straight sessions, along with some increase in investor participation across the trading board, as opportunistic investors turned back to the market following the easing of tensions over the market's momentum.
Buyers continued to dominate the market as they sought to capitalise on scrips perceived to be trading at attractive valuations, driving the majority of scrips into positive territory for consecutive sessions, and thus extending the market's recovery from the protracted bearish spells, EBL Securities said.
On the sectoral front, food issues exerted the highest by 17.3% in total turnover, followed by pharma with 16.8% and bank with 14.6%.
Lovello Ice-cream was the top traded stock, which was followed by Square Pharma and BRAC Bank.
Weak firms rally raises concerns
Financially weak and loss-making firms dominated the top gainers' list, sparking concerns about potential market manipulation, market experts said.
A managing director of a brokerage firm, speaking on condition of anonymity, warned that rallies led by such companies often distort market discipline and leave unsuspecting investors with losses when the trend reverses. He emphasised the need for both investor caution and closer scrutiny by regulators.
For the second consecutive session, loss-making Indo-Bangla topped the gainers' chart, rising by 10% to Tk12.10 per share. Other loss-making firms making the list included New Line Clothings, Central Pharma, BIFC, Familytex, and Silva Pharma.
Meanwhile, Nitol Insurance was the day's top loser, falling 4.11% to Tk23.30. First Bangladesh Fixed Income Fund dropped 2.85% to Tk3.40, and Fareast Finance lost 2.70% to Tk3.60.
In the port city, the Chittagong Stock Exchange (CSE) also ended in positive territory, with its CSCX and CASPI indices gaining 20 and 25 points, respectively.
