DSE turnover dips to four-month low, but most stocks surge

Stocks on Monday surged mostly in the late hours amid buying pressure, but turnover at the Dhaka Stock Exchange (DSE) fell to a four-month low as investor sentiment remained sluggish due to fears of amendments to the margin rules.

On Sunday, the second trading session of the week, the DSEX surged 67 points, while turnover dipped 11% to Tk397 crore. On the day, most stocks saw price increases.

According to the data of the DSE, stocks opened on a positive note on Monday, which lasted for only four minutes. As sell-offs surged, the market turned red until 10:17am. After that, due to buying pressure on some sector specific stocks pulled the indices back to green, and despite ups and downs throughout the session, the market ultimately closed higher, with the DSEX gaining 67 points. 

Meanwhile, the other indices also advanced – the DSES – Shariah index rose 19 points, and the DS30 – blue-chip index, climbed 27 points. 

In the previous trading session, all indices had ended in the red as heavy sell-offs gripped the market. However, a day after the sharp decline, stocks rebounded as investors became active on the buying side. 

Market insiders said the overall market sentiment remained dull due to fears of significant changes in the margin rules. As a result, stocks have been bearing the brunt of selling pressure as investors reshuffle their portfolios. 

They added that some investors are also focusing on fundamentally strong stocks based on upcoming dividend declarations and annual financial results.

According to data from the DSE, among the traded A category stocks, which offer over 10% dividend, prices of around 75% (167 stocks) advanced on Sunday. Similarly, 76 out of 81 B-category stocks also gained. Among the 96 Z-category stocks, prices of 57 stocks rose, the data showed.

EBL Securities, in its daily market commentary, said the benchmark index of the capital bourse resurrected after a prolonged bearish spell, as easing sell pressure from jittery investors coincided with a resurgence of bargain-hunting appetite, with opportunistic investors engaging in broad-based accumulation of stocks they deemed to be traded at attractive valuations.

"The market started on a shaky note; however, buyers gradually asserted their dominance as the session progressed, steering the index into an upward trajectory until the session's end. While the recovery efforts offered investors some respite, concerns persist that the rebound may remain short-lived, as market turnover remained subdued, further declining by 10.8% to Tk394 crore," it read.

Monno Fabrics topped the gainers' chart with a 10% rise to Tk16.5 per share, followed by Samata Leather up 9.97% to Tk84.9, Information Services Network up 9.96% to Tk85, Intech Ltd to Tk28.7, and eGeneration up 9.47% to Tk23.1 each.

On the other hand, FAS Finance led the losers' list as its share price fell 8.33% to Tk1.1, followed by Nurani Dyeing down 4.54% to Tk2.1, RSRM Steel down 4% to Tk7.2, Vanguard AML BD Finance Mutual Fund down 3.89% to Tk7.4, and SEML Lecture Equity Management Fund down 3.84% to Tk7.5 each.

As per the data of the DSE, of the traded stocks lebelled as A category, which pays over 10% dividend, some of 75% or 167 stocks price surged on Sunday, while 76 stock under the B category out of 81 also surged. Of the 96 Z category stocks, 57 stocks price advanced, data showed.

Monno Fabrics topped the gainer chart with a gain of 10% to Tk16.5 each, followed by Samata Leather by 9.97% to Tk84.9 each, Information Services by 9.96% to Tk85 each, Intech Ltd by 28.7 each, and eGeneration by 9.47% to Tk23.1 each.

While FAS Finance led the top loser list as its shares price declined by 8.33% to Tk1.1 each, Nurani Deying by 4.54% to Tk2.1 each, RSMR Steel by 4% to Tk7.2 each, Vanguard AML BD Finance mutual fund's unit price declined by 3.89% to Tk7.4 each, and SEML Lecture Equity Management Fund by 3.84% to Tk7.5 each.

The port city bourse, CSE, also experienced a positive session today. The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) advanced by 11.9 and 9.0 points, respectively.