Dhaka stocks rebound despite 17% drop in turnover
The benchmark DSEX index gained 18 points to close at 5,028
The key indices of the Dhaka Stock Exchange (DSE) rebounded today (27 November), snapping a short-lived correction, even as the market's daily turnover declined significantly.
Throughout the session, cautious investors showed limited participation on the trading floor, selectively engaging in trades.
Meanwhile, many others chose to secure profits amid the ongoing market volatility, preferring to wait for clearer signals before making fresh investments ahead of the announcement of the national election schedule.
Keep updated, follow The Business Standard's Google news channel
The benchmark DSEX index gained 18 points to close at 5,028. The blue-chip DS30 advanced 8 points to 1,934, while the Shariah-compliant DSES index rose 6 points to finish at 1,057.
Daily turnover fell by 16.86% to Tk439 crore, down from Tk528 crore in the previous session. Of the 379 issues traded, 170 advanced, 136 declined, and 73 remained unchanged.
Market insiders say that although the indices have been edging upward in recent days, investors have not realised gains in line with expectations due to continued short-term volatility. Uncertainty over the political environment ahead of the polls has left many unsure about the market's next direction.
However, expectations tied to the upcoming national elections may brighten sentiment in the coming weeks, they say, as political clarity typically boosts investor confidence and participation.
They also explain that the market has become significantly oversold after several consecutive weeks of price declines. As a result, many fundamentally strong stocks are now trading at undervalued levels. This has prompted cautious but opportunity-driven investors to take fresh positions in anticipation of potential future gains.
According to market observers, the recent downturn was not driven by political uncertainty alone. The enforcement of new margin loan regulations also triggered forced sell-offs by many investors, which intensified the decline and put additional pressure on overall market prices.
Among the top gainers, Rahima Food Corporation rose by 9.93%, followed by Fortune Shoes by 9.98%, and Ring Shine Textiles, both up by 9.38%.
On the losing side, Peoples Leasing dropped by 10%, followed by Prime Finance by 10%, and Fareast Finance by 9.09%. Besides, Khan Brothers PP Woven Bag, Shahjibazar Power, and Beach Hatchery were the top-traded stocks.
Most large-cap sectors posted positive performance. Pharmaceuticals recorded the highest gain of 0.55%, followed by Engineering (0.49%), Telecommunication (0.33%), Banking (0.15%), Fuel & Power (0.11%), and NBFI (0.06%), while Food & Allied edged down slightly by 0.02%.
Block trades accounted for 2.8% of the day's total market turnover. Khan Brothers PP Woven Bag Industries Limited was the most actively traded share, gaining by 0.7% with a turnover of Tk23 crore.
The Chittagong Stock Exchange (CSE) also closed higher, with the CSCX index rising by 16 points to 8,642, and the CASPI index gaining by 26 points to close at 14,037, reflecting positive sentiment across both major bourses.
