Dhaka stocks see modest recovery last week

Infographic: TBS

The benchmark index, DSEX, of the Dhaka Stock Exchange (DSE) saw a modest recovery last week, driven by cautious investors seeking undervalued stocks despite ongoing political and economic uncertainties.

A notable increase in activity was observed in Z and B category companies, contributing to the overall positive momentum.

At the end of the week, DSEX increased by 66.28 points to 5,179. The blue-chip index, DS30, was up by 9 points to 1,913, the shariah-compliant stocks' index, DSES, increased by 14 points to 1,162 and the DSE SME Index (DSMEX) rose by 50 points to 1,036.

The weekly average turnover increased by 25.28% to Tk427 crore compared to the previous week, with the total turnover at Tk2,133 crore, up from Tk1,695 crore. However, market capitalisation increased by 1.37%, to Tk6,73,931 crore from Tk6,64,825 crore.

Of the 413 issues traded on the DSE, 265 advanced, 103 declined 27 remained unchanged, and 18 not traded.

According to market insiders, many investors remain hesitant to engage in the market due to political and economic uncertainties. While there is a sense of optimism, a significant portion of the investor community continues to hold back from active participation, they say. If investor participation gradually increases, it could lead to short-term gains within a brief period, the market insiders say.

At the end of the week, the top gainer list led by Z and B categories stock. Of this list, 50% of stocks are Z category. Among individual stocks, Energypac Power Generation led the weekly gainers with a 59.12% increase to Tk21.80, followed by Premier Leasing & Finance 34.48% to Tk3.90, Phoenix Finance and Investments 33.33% to Tk4.80, New Line Clothings 25.33% to Tk9.40, and Alif Manufacturing Company 25% to Tk8.50.             

On the other hand, Renwick Jajneswar & Co (Bd) topped the losers' list, declining by 17.49% to Tk550 followed by Mercantile Islami Insurance at 6.61% to Tk24, Express Insurance at 6.58% to Tk51.10 and Global Heavy Chemicals at 6.06% to Tk21.70.

In its weekly market commentary, EBL Securities noted that the capital bourse saw a modest recovery as easing inflation and declining Treasury yields spurred bargain hunters to take positions in lucrative scrips amid expectations for a slight reversal from the market's prolonged bearish sentiment.

Moreover, better-than-expected earnings disclosure of sector-specific scrips has also somewhat invigorated the market from its weakened momentum, it observed.

Additionally, investors' buying interest in certain December-closing scrips, including the bank stocks, ahead of their upcoming corporate declarations also contributed to the market's sustained upbeat vibe throughout the week, according to the market commentary.

Investor participation increased by 25.8%, reaching Tk4,26.6 crore compared to Tk339 crore in the previous week.

The highest investor activity was observed in the banking sector (14.9%), followed by the textile sector (14.2%) and the pharmaceuticals sector (13.3%). Most sectors closed in positive territory, with the financial institutions sector leading the gains (4.9%).

The port city bourse (CSE) also ended up in green territory last week. The Selective Categories Index (CSCX) up by 1.17%, and the All-Share Price Index (CASPI) increased by 1.52%. The total turnover stood at Tk27.22 crore.

Of the 299 issues traded on the CSE, 187 advanced, 79 declined and 33 remained unchanged.