Dhaka stocks see positive week as investors show appetite for undervalued scrips

Infographic: TBS

The benchmark index, DSEX, of the Dhaka Stock Exchange (DSE) experienced a positive week, rising by 47 points to 5,247, as investors cautiously bought undervalued stocks with strong potential, despite ongoing political and economic uncertainties.

While the DSEX saw gains, the blue-chip DS30 index fell by 4 points to 1,906. The shariah-compliant DSES index increased by 4 points to 1,167, and the DSE SME Index (DSMEX) declined by 18 points to 1,018.

The weekly average turnover increased by 10.14% to Tk518 crore compared to the previous week, with the total turnover at Tk2,590 crore, up from Tk2,352 crore. Market capitalisation increased by 0.02%, to Tk6,95,364 crore from Tk6,95,191 crore.

Of the 413 issues traded, 261 advanced, 108 declined while 29 remained unchanged. 

Market insiders said investors are taking positions in promising stocks ahead of the December closing, hoping for good dividends, expected earnings, and opportunities in undervalued stocks.

Among individual stocks, S Alam cold Rolled Steels led the weekly gainers with a 53.25% increase to Tk23.60, followed by Bashundhara Paper by 47.69% to Tk41.50, Aramit Cement by 37.50%, Ratanpur Steel by 31.91% and Safko Spinnings by 26.88%.             

On the other hand, Sunlife Insurance topped the losers' list, declining by 9.55% to Tk68.20, followed by Midland Bank at 8.26% to Tk21.10, Hami Industries at 8.06% to Tk102.06, Sharp Industries at 6.50% to Tk23 and New Line Clothings at 5.98%. 

In its weekly market commentary, EBL Securities noted that the benchmark index of the capital bourse resumed its gaining streak after being marginally subdued in the previous week, as investors showed buying interest in particular large-cap scrips, especially the Bank stocks, as anticipation builds ahead of their year-end earnings and dividend declarations.

The market experienced positive momentum right from the start of this week, with renewed buying interest also observed in certain beaten-down scrips as investors perceived them as lucrative after significant price reductions.

However, profit-taking pressure emerged later in the week as investors opted to capitalise on the invigorated market activity and preferred to remain observant of the market's momentum ahead of the Ramadan season, according to the market commentary.

Investors were most active in the textile sector (15.0%), followed by the pharmaceuticals sector (12.2%) and the banking sector (11.8%). 

Most sectors closed in positive territory, with the paper sector leading the gains at 13.2%. On the other hand, the life insurance sector was the biggest loser, declining by 0.7%.

At the end of the week, the Chittagong Stock Exchange (CSE) also saw a positive week, with its selected index (CSCX) rising by 0.84% to settle at 8,868 points and the All Share Price Index (CASPI) increased by 0.93% to settle at 14,633 points. Its turnover stood at Tk170.36 crore.