Stocks edge higher despite Tk5,000cr drop in market cap

The country's premier bourse returned to positive territory today as a wave of bargain hunting helped the benchmark index snap a two-session losing streak, although overall market capitalisation fell by Tk5,000 crore.

Despite lingering concerns over global geopolitical dynamics and domestic economic factors, opportunistic investors moved in to accumulate beaten-down scrips, particularly in the banking and manufacturing sectors. 

The benchmark DSEX index of the Dhaka Stock Exchange rose by 12 points to settle at 5,277, while the blue-chip DS30 index followed suit, gaining 4 points to close at 2,023.

Market participation showed signs of improvement as total turnover at the DSE climbed by 6% to reach Tk877 crore compared to the previous session. 

According to the daily market review by EBL Securities, the capital bourse staged a modest rebound supported by resilient investor participation. The market opened on a firm note with steady accumulation through the mid-session. 

However, the upward momentum was somewhat tempered toward the end of the day as cautious selling from some quarters trimmed intraday gains. 

Interestingly, while the key indices rose, the overall market capitalisation at the DSE dropped by Tk5,000 crore to settle at Tk6.81 lakh crore, a phenomenon largely attributed to the price adjustment of high-cap stocks.

On the sectoral front, the banking sector dominated market activity, accounting for 19.1% of the total turnover. This was followed by the engineering and pharmaceutical sectors, which contributed 12.5% and 12.4% to the day's volume, respectively. 

In terms of returns, the ceramic sector led the gainers with a 3.1% increase, followed by jute at 2.9% and information technology at 1.5%. On the downside, the general insurance, mutual fund, and food sectors faced corrections, with general insurance declining by 1.0%.

The market breadth remained slightly in favour of the bulls, as 174 issues advanced compared to 159 that declined, while 63 remained unchanged. 

Individual stock performance was highlighted by JMI Syringe and JMI Hospital, both of which surged by nearly 10% to lead the gainers' list. 

On the other hand, City Bank emerged as the top loser of the day, shedding 13.33% of its value. 

However, market analysts noted that this sharp decline was due to the technical adjustment of its share price following the record date for its 15% stock dividend declaration for the year 2025.

The positive sentiment was partially mirrored at the Chittagong Stock Exchange (CSE), where the CSCX index ended 6 points higher at 9,093. However, the CASPI edged down by 4 points to settle at 14,783. 

Trading activity at the port city bourse saw a significant contraction, with turnover plunging by 59% to stand at a modest Tk16.77 crore.