Large-cap stocks drive DSEX rebound after two days' decline
It jumped 23 points to reach 5252 on the last trading session of the week. During the previous two sessions, DSEX lost a total of 82 points.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rebounded on Thursday after two consecutive days of decline, as cautious investors renewed their interest in lucrative stocks.
It jumped 23 points to reach 5252 on the last trading session of the week. During the previous two sessions, DSEX lost a total of 82 points.
The blue-chip index DS30 rose by 5 points to 1,875, helping to mitigate a sharp decline in the overall DSE indices. The Shariah-based index, DSES, also rose by 5 points, reaching 1,144.
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A few large-cap stocks contributed 16 points, while shares of some banks declined in the session.
Turnover on the DSE increased by 22% during the session, reaching Tk 374 crore compared to the previous session.
The latest decline has been attributed to investors' losing confidence due to a prolonged bearish trend prevailing on the country's premier bourse.
A selling spree among investors in anticipation of a potential 15% income tax on capital gains for FY25 intensified the recent decline. The capital gains from the stock market are currently tax-free.
In its daily market commentary, EBL Securities said the DSEX managed to stay positive on Thursday, as opportunistic investors sought bargain-hunting opportunities in specific sectors.
"However, overall market participation remained stagnant as cautious investors stayed observant of the market's trend amid uncertainties leading up to the national budget declaration," it added.
Meanwhile, the DSE has requested the National Board of Revenue (NBR) not to impose such taxes in the upcoming budget, citing that the market is in a critical condition thanks to a global economic crisis intensified by the Russia-Ukraine War.
Among the traded scrips on the DSE, 213 advanced, 126 declined, and 50 remained unchanged.
Rupali Life Insurance Company, Orion Pharma, Orion Infusion, and Asiatic Laboratories Limited were the most traded shares.
Buyers dominated the daily trade as some investors went for the potentially lucrative scrips with an expectation for a short-term gain, according to market analysts.
Pharma led sectoral turnover with 18.8%, followed by life insurance at 13.4% and textiles at 11.4%. Most sectors showed mixed returns, with travel and food gaining the most 1.8% each and paper 1.7%.
On the other hand, tannery sector saw the most correction of 2.2%, followed by Jute's 1.8% and Telecom's 0.9% decline.
The port city bourse, CSE, however, settled on red terrain. The selected indices (CSCX) and All Share Price Index (CASPI) declined by 7.0 and 12.4 points, respectively.
