Investors return, DSEX climbs 43 points on recovery mood

Infographic: TBS

The DSEX, Dhaka Stock Exchange's premier index, continued its upward momentum for the second consecutive session today (17 November) as cautious investors selectively entered oversold stocks. The index rose 43 points to close at 4,775, while the blue-chip DS30 index gained 47 points to finish at 1,870. 

The Shariah index also climbed 15 points to settle at 1,000. Market turnover rose 17% to Tk348 crore, compared to Tk298 crore in the previous session. Among 373 traded issues, 322 advanced, 35 declined, and 16 remained unchanged.

Market insiders said that after weeks of consecutive price declines, many fundamentally strong stocks are now available at undervalued levels, attracting opportunity-seeking investors. The market also received a boost as Investment Corporation Bangladesh (ICB) reportedly secured government support of Tk1,000 crore, helping restore some stability and investor confidence.

Political tension surrounding the verdict on fugitive former prime minister Sheikh Hasina has eased slightly, improving sentiment. Analysts also anticipate that the schedule for the upcoming national elections may soon be announced, which could further lift market confidence.

Multiple market analysts, speaking on condition of anonymity, noted that political uncertainty remains a key pressure point, but expect the market to recover gradually once stability returns. They also highlighted that equity yields are currently more attractive than treasury bills and bonds, which may encourage investors to shift funds from fixed-income instruments to stocks in the near term.

The recent downturn in the market was also exacerbated by new margin loan rules, which forced many investors to sell holdings, adding downward pressure. EBL Securities commented that the capital market sustained its recovery as opportunistic investors accumulated beaten-down stocks, though broader participation remained cautious amid uncertainty over market momentum.

Indices maintained upward trajectories throughout the session, with many stocks recovering part of their earlier losses. Investor sentiment was also influenced by rumours of favourable outcomes in ongoing legal proceedings related to margin rules.

The Chittagong Stock Exchange (CSE) closed positively as well, with the Selective Categories Index (CSCX) rising 19 points to 8,287, while the All Share Price Index (CASPI) fell 42 points to 13,369.