DSEX rises on mid- and small-cap gains, but blue-chip index slips
However, the overall sentiment was tempered by a decline in blue-chip shares, keeping investors cautiously optimistic
The Dhaka Stock Exchange (DSE) experienced mixed trading today (20 February), with the benchmark index DSEX edging higher, driven by gains in mid- and small-cap stocks.
However, the overall sentiment was tempered by a decline in blue-chip shares, keeping investors cautiously optimistic.
The DSEX climbed 7.93 points, or 0.15%, closing at 5,200, driven by strong performances in select sectors. Meanwhile, the DS30 index, which tracks blue-chip companies, fell 3 points, or 0.16%, reflecting a sell-off in heavyweight stocks.
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Analysts attributed the divergence to profit-taking in high-value stocks and a shift in investor focus toward undervalued mid-cap and small-cap equities.
Among the traded stocks, 167 advanced, while 160 declined and 74 remained unchanged.
EBL Securities said in its daily market review, the benchmark index of the capital bourse returned to the positive zone today as investors showed interest in certain speculative and December-closing scrips following some corrections amid continuing short-term profit booking pressure.
Although the market opened on a positive note, selling pressure emerged to fade the initial optimism. However, buyers regained momentum in the final hour, driving a U-shaped recovery and lifting the benchmark index into positive territory after two consecutive sessions of decline, it added.
The turnover, a key indicator of activity in the capital market, increased by 9% to Tk466 crore, reflecting heightened investor participation.
A senior analyst at a leading brokerage firm noted that a growing number of investors, particularly institutional ones, are shifting their funds to the stock market as treasury yields on government securities have declined.
"Interest rates on government securities have fallen sharply since early February, driven by excess liquidity in the banking sector and weak demand for private sector loans. This trend signals a potential drop in lending rates," the analyst explained.
Yields on government securities have decreased by nearly two percentage points since December, dropping to just over 10% in February, according to the Bangladesh Bank data.
"It is a common trend that when interest rates fall, the capital market tends to surge as investors redirect their funds to equities in search of higher returns," the analyst added.
B-category stocks dominate top gainers' chart
B-category stocks, often referred to as mid-level stocks with a maximum dividend payout of 5%, dominated the top gainers' chart at the DSE. Among these, six companies hit their upper circuit breakers, securing their positions as the day's top performers.
The top six gainers included Fu Wang Food, S Alam Cold Rolled Steels, Golden Harvest Agro Industries, BD Thai Food, Shinepukur Ceramics, and Zaheen Spinning. Despite facing various business challenges, these firms saw significant price surges during the trading session.
Fu Wang Food led the pack, with its shares soaring by 10% to close at Tk15.4. Similarly, S Alam Cold Rolled Steels also surged by 10%, ending the day at Tk15.4.
Other notable performers included Golden Harvest Agro Industries, whose shares jumped 9.83% to Tk13.4, and BD Thai Food, which climbed 9.79% to Tk15.7. Shinepukur Ceramics rose by 9.70% to Tk14.7, while Zaheen Spinning gained 9.58% to close at Tk8.
