Dhaka stocks rise for third day as cautious investors return to market
Turnover increased by 12.98% to Tk670 crore, up from Tk593 crore in the previous session.
Dhaka stocks extended their gains for a third consecutive session yesterday (20 January), as cautious investors remained active on both the buying and selling sides amid political uncertainty.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) gained 17 points to close at 5,109. The blue-chip DS30 index rose by 6 points to 1,970, while the Shariah-based DSES index added 7 points to finish at 1,031.
Turnover increased by 12.98% to Tk670 crore, up from Tk593 crore in the previous session. Of the 388 issues traded, 210 advanced, 109 declined and 69 remained unchanged.
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According to market insiders, the stock market had become oversold after several months of decline, largely driven by political uncertainty. However, as the election draws closer, some of that uncertainty has begun to ease, encouraging a return of fresh investment.
They also noted that the market often shows a positive trend around mid-January, which has further supported investor activity. As a result, trading has picked up on both sides of the market.
Over the past year, political uncertainty and several decisions taken by the market regulator were not positively received by investors. Many investors left the market, while a large number of institutional and high-net-worth investors became largely inactive.
This prolonged weakness pushed down the prices of even fundamentally strong stocks.
Analysts said political uncertainty remains the most important factor shaping investor sentiment. As this uncertainty gradually eases, they expect the market to move in a more positive direction.
However, they added that since the situation has not fully stabilised, institutional and large investors are still staying on the sidelines, keeping trading volume below its potential level.
They believe that if policy stability is ensured and investor confidence returns, the capital market has strong potential to recover in the coming period.
Large-cap sectors showed mixed performance during the session. The telecommunication sector posted the highest gain, rising by 1.41%, followed by engineering, which advanced 0.87%. The fuel and power sector gained 0.40%, while pharmaceuticals rose by 0.39%.
On the downside, the non-bank financial institutions (NBFI) sector slipped by 0.02%, banking fell by 0.13%, and the food and allied sector recorded the biggest loss among large-cap sectors, declining by 0.45%. Block trades accounted for 4.8% of the day's total turnover.
The Chittagong Stock Exchange also closed higher. The CSCX index rose by 28 points to 8,819, while the CASPI index gained 44 points to close at 14,243, reflecting a positive mood across both major bourses.
