DSEX jumps 93 points, snaps five-session losing streak as gas supply assurances lift sentiment
Broad-based buying lifts all major DSE indices.
Stocks on the Dhaka bourse staged a strong rebound today (15 September), snapping a five-session losing streak as bargain hunters returned to the market on assurances of an imminent resolution to industrial gas supply constraints and expectations of regulatory measures to arrest the prolonged downturn.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), jumped 93 points to close at 5,472, recovering a significant portion of the losses accumulated over the previous five sessions. The blue-chip DS30 index also gained 24 points to settle at 2,087.
The rebound was broad-based, with 336 issues advancing against just 21 declining and 37 remaining unchanged. Turnover, however, rose only 4% to Tk504 crore, suggesting that while buying interest returned, investors remained selective amid lingering uncertainty.
EBL Securities said the battered market finally found some relief as bargain hunting spread across the bourse. Investor confidence improved following the prime minister's assurance of an imminent resolution to industrial gas supply constraints, along with the regulator's engagement with leading brokerage firms over the market's prolonged weakness.
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The market opened on a positive note and maintained its upward momentum throughout the session. The DSEX gained more than 100 points at one stage as investors moved to pick up shares that had suffered sharp corrections during the recent sell-off.
Sheltech Brokerage Limited attributed the strong performance to renewed buying interest following expectations surrounding the regulator's decision to convene an urgent meeting with leading brokerages. Reports of a significant improvement in gas supply after the outage of a floating LNG terminal caused by a fire on 21 July also supported investor sentiment.
The benchmark index climbed to an intraday high of 5,489 points, near which it settled, as buying strengthened from the middle of the session.
However, market participants cautioned that today's rally should not yet be interpreted as a decisive turnaround. Investors are likely to closely monitor whether the renewed buying momentum can be sustained and broaden across sectors in the coming sessions.
The proposed market-development initiatives by the Bangladesh Securities and Exchange Commission, developments in the Middle East conflict, the country's energy supply situation and upcoming earnings and dividend announcements by companies with June year-end remain key factors that could determine the market's direction in the near term, said Sheltech Brokerage.
Large-cap stocks played a significant role in the day's rebound. BAT Bangladesh, Beximco Pharmaceuticals, BRAC Bank, City Bank and United Commercial Bank were among the major contributors to the rise in the benchmark index.
Trading activity was led by textile stocks, which accounted for 21.9% of total turnover. General insurance followed with 19.4%, while banks accounted for 12.2%.
Most sectors posted positive returns. Services gained 4.1%, making it the best-performing sector, followed by general insurance with a 3.8% rise and paper with 3.7%.
IPDC Finance, Reliance Insurance, Eastern Bank, Sharp Industries and Envoy Textile were among the most-traded stocks.
Yeakin Polymer led the gainers, rising 10%, followed by Al-Haj Textile at 9.96% and Orion Infusion at 9.95%. Samorita Hospital and Samata Leather advanced 9.90% and 9.87%, respectively.
A few securities bucked the broader rally. PHP First Mutual Fund and Popular Life Insurance First Mutual Fund each declined 2.85%, while Zahin Textile, Shurwid Industries and Al-Arafah Islami Bank fell 2.56%, 1.69% and 1.27%, respectively.
The Chittagong Stock Exchange also ended higher. The CSCX rose 26 points to 8,935, while the CASPI advanced 44 points to close at 14,598.
