DSEX extends rally to 5th day
The blue-chip DS30 index also saw a slight uptick, closing the day at 2,030.
The benchmark index of the Dhaka Stock Exchange (DSE) extended its winning streak for the fifth consecutive session today (24 May), navigating through a volatile trading day that saw early panic selling replaced by late-session optimism.
While the premier bourse faced significant pressure in the opening hours following a central bank directive on bank dividends, a massive stimulus package announced for non-operational companies eventually stabilised the market, allowing the broad index to settle in green territory, according to the market insiders.
The DSEX, the broad index of the Dhaka bourse, rose by 7 points or 0.13% to settle at 5,335. With this marginal gain, the index has accumulated a total of 132 points over the last five consecutive trading sessions.
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The blue-chip DS30 index also saw a slight uptick, closing the day at 2,030.
Despite the positive finish for the indices, market participation remained subdued as investors adopted a cautious stance, leading to a 14% decline in daily turnover, which stood at Tk778 crore compared to the previous session.
The trading day began on a dismal note, with many investors offloading shares in the banking sector. The bearish sentiment was triggered by the Bangladesh Bank's latest circular, which tightened the rules for commercial banks regarding the declaration and distribution of cash dividends.
However, the morning's selling pressure gradually faded as news of a Tk60,000 crore stimulus package began to circulate among the trading community. The central bank unveiled this rescue fund with the specific goal of reviving stalled production and boosting employment by providing low-interest loans to non-operational and non-performing firms.
A senior researcher at a leading brokerage firm observed that the market's ability to recover from the initial shock was a sign of growing resilience among investors.
He pointed out that while the dividend restrictions for banks were a short-term headwind, the massive rescue fund for industrial units provided a new narrative of potential recovery for the broader economy. At the end of the day, the support from large-cap stocks ensured that the benchmark index remained in positive territory despite the broader sectoral volatility.
Market breadth remained positive at the close, with 161 issues advancing, 136 declining, and 92 remaining unchanged on the DSE floor.
In the gainers' list, Nahee Aluminum led the pack with a 9.93% surge, followed by Heidelberg Materials, Daffodil Computer, Generation Next, and RSRM Steel.
Notably, the rise in shares like Generation Next and RSRM Steel reflected the speculative interest in non-operational firms following the stimulus news. On the other hand, Peoples Leasing emerged as the top loser, shedding 5.55%, followed by NCC Bank Mutual Fund One, Mozaffar Hossain Spinning, and RD Food.
On the liquidity front, Asiatic Laboratories was the most traded stock, followed by Dominage Steel, City Bank, BRAC Bank, and Mir Akhter.
The positive sentiment was even more pronounced at the Chittagong Stock Exchange (CSE), where the key indices posted stronger gains.
The Selective Categories' Index (CSCX) ended 38 points higher at 9,169, while the All Share Price Index (CASPI) jumped 70 points to reach 14,909. However, similar to the Dhaka bourse, the port city exchange witnessed a decline in trading activity, with turnover dropping by 11% to settle at Tk21.80 crore.
