DSEX edges higher in volatile trade as insurance stocks spark resilience
The benchmark index edged up as insurance stocks helped the market recover, while profit-taking and lower turnover kept gains limited.
The Dhaka Stock Exchange (DSE) closed marginally higher today (4 August) after a volatile trading session marked by a tug-of-war between bargain hunters and profit-takers.
The benchmark DSEX index rose 8 points, or 0.14%, to 5,894. However, the blue-chip DS30 index slipped 2 points to 2,201, suggesting investors selectively favoured momentum-driven stocks over large-cap heavyweights, market insiders said.
Market breadth remained almost evenly balanced, with 170 stocks advancing, 176 declining and 45 remaining unchanged.
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Turnover at the premier bourse declined 8% from the previous session to Tk1,111 crore, indicating slightly weaker market participation.
According to EBL Securities, the market showed resilience as investors continued accumulating momentum-driven stocks despite lingering concerns about the market's underlying strength. While cautious sentiment from previous sessions initially kept indices under pressure, a mid-session rally in insurance stocks helped the market recover and close in positive territory.
Sheltech Brokerage Limited said early buying pushed the benchmark index to an intraday high of 5,913 points before intensified profit-booking dragged it down to an intraday low of 5,888 points.
Although the market attempted to recover in the latter half of the session, buying conviction remained weak, and selling pressure erased much of the morning's gains.
The textile sector accounted for the largest share of turnover at 20.3%, followed by general insurance with 17.1% and pharmaceuticals with 12.2%.
Insurance was the day's best-performing sector, with general insurance advancing 3.4% and life insurance gaining 2.7%. The services sector also rose 1.7%.
On the downside, the information technology sector posted the steepest decline, falling 1.2%, while the ceramic and travel sectors also recorded marginal losses.
Among individual stocks, GBB Power and Tung Hai Knitting topped the gainers' list after hitting the 10% upper circuit breaker. Central Insurance and Prime Insurance also posted strong gains.
Matin Spinning was the day's worst performer, losing 4.61%, followed by Ring Shine Textile and EBL First Mutual Fund.
The mixed sentiment was also reflected at the Chittagong Stock Exchange (CSE). The broad CASPI index gained 25 points to close at 15,789, while the Selective Categories' Index (CSCX) edged down 2 points to 9,621. Turnover at the port city bourse fell 20% to Tk18 crore.
