DSE indices return to green after three-day correction

Infographic: TBS

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), returned to the green on Wednesday after a decline over three consecutive trading days, supported by ongoing positive momentum in the capital market as cautious investors showed renewed buying appetite on the trading floor.

Over the past three sessions, the DSEX had shed 94 points as part of a natural correction. But on Wednesday, the index rebounded by 54 points to settle at 5,352. 

Blue-chip stocks drove the uptrend, with the DS30 index gaining 21 points to close at 2,065, while the Shariah index, DSES, added 7 points to finish at 1,154.

Turnover also rose by 3.63% to Tk743 crore, up from Tk717 crore in the previous session. Among the 398 traded issues, 253 advanced, 67 declined, and 78 remained unchanged.

Major blue-chip stocks played a key role in lifting the index, including Square Pharmaceuticals, British American Tobacco Bangladesh, BRAC Bank, Marico Bangladesh, United Power Generation & Distribution, Southeast Bank, Jamuna Bank, Pubali Bank, Prime Bank, and Grameenphone.

Market insiders expect the current uptrend in stocks to continue for several more sessions, despite some likely profit-taking.

They noted that the recent correction was driven by profit booking, not weakening momentum.

A key driver is the falling yield on government securities, which analysts expect to decline further. "With stock market returns around 10%, lower bond yields make equities more attractive," said one analyst.

Investor confidence is also being bolstered by stabilising forex reserves, the government's plan to merge weak banks, and fading political uncertainty ahead of the national election.

Many June-year-end companies remain undervalued, drawing renewed buying interest. Overall, insiders say the rally is supported by easing economic concerns, policy moves, and compelling valuations — making equities hard to ignore.

In its daily market review, EBL Securities said the benchmark index of the capital bourse returned to positive territory after three consecutive sessions of profit-taking, as investors showed renewed buying interest amid positive expectations surrounding recent macroeconomic developments.

The market opened on a positive note, and price appreciation in major blue-chip and large-cap stocks reinforced the upward momentum throughout the session. Optimism over a favorable outcome from ongoing US tariff negotiations also buoyed buying interest in textile sector stocks, the review added.

On the sectoral front, Bank (30.0%) issues recorded the highest turnover, followed by Pharma (12.0%) and Textile (11.5%). Most sectors posted positive returns, with Textile (2.8%), Services (2.8%), and General Insurance (2.1%) showing the strongest gains on the bourse, while only Telecom (-0.3%) experienced a slight correction.

The port city bourse, Chattogram Stock Exchange (CSE), also ended on a positive note. Its key indices — the Selective Categories' Index (CSCX) and the All Share Price Index (CASPI) — rose by 39.7 points and 61.9 points, respectively.