Market ends flat-to-positive as investors bet on budget optimism

The benchmark index of the Dhaka Stock Exchange (DSE) managed to close in positive territory today (11 June), as a last-hour buying surge helped the market recover from a day of intense volatility.

Investors selectively accumulated stocks they perceived to be attractively valued, driven by optimistic sentiment and expectations of market-friendly measures in the national budget. While the broad index posted a marginal gain, the blue-chip segment remained under pressure due to corrections in several heavyweight stocks.

The benchmark DSEX index inched up by 3.57 points, or 0.06%, to settle the session at 5,520. However, the blue-chip DS30 index followed a different trajectory, shedding 7 points to close at 2,072, reflecting the impact of price drops in large-cap entities. 

Despite the DSEX finishing in the green, market breadth remained negative as 189 issues declined compared to 157 that advanced, while 45 scrips remained unchanged on the DSE floor. 

Market participation saw a slight improvement, with daily turnover rising to Tk1,238 crore.

According to the daily market review by EBL Securities, the capital bourse remained volatile throughout the session as investors were active on both sides of the trading fence. The market was weighed down by corrections in several large-cap stocks for most of the day, but a resurgence of buying interest in the final hour of trading successfully lifted the benchmark index into positive territory before the closing bell. 

On the sectoral front, the general insurance sector dominated market activity, accounting for 18.5% of the total turnover. This was followed by the engineering and textile sectors, which contributed 11.4% and 10.3% to the day's volume, respectively. 

In terms of returns, the services sector led the gainers with a 4.2% increase, while life insurance and ceramics also posted notable gains. Conversely, the miscellaneous sector faced the steepest correction of 4.1%, largely due to the continued slide of Beximco Limited. The travel and jute sectors also experienced significant price dips.

Individual stock performance was highlighted by BD Thai Aluminium and Desh General Insurance, both of which surged by nearly 10% to lead the gainers' list. Islami Bank and IPDC Finance also saw robust price appreciation, with the latter featuring among the turnover leaders. 

On the losing end, Meghna Pet emerged as the top loser with a 10% drop, followed closely by Beximco Limited, which plunged by 9.97% to hit its lower circuit limit. Other turnover leaders of the day included Summit Alliance Port, Peoples Insurance, BD Thai Food, and NCC Bank.

The sentiment was somewhat different at the Chittagong Stock Exchange (CSE), where the key indices ended in the red despite a jump in trading activity. The Selective Categories' Index (CSCX) declined by 45 points to finish at 9,320, while the All Share Price Index (CASPI) dropped by 48 points to settle at 15,195. Turnover at the port city bourse, however, surged by 41% to reach Tk34.33 crore.