Stocks end flat after two-day recovery

Stocks ended almost flat today (11 March), with the DSEX – the benchmark index of the Dhaka Stock Exchange (DSE) – rising by 2.50 points after two days of recovery.

Following the trading session in two-days, most of the stocks today increased but turnover fell 12% to Tk523.59 crore as investors remained watchful of the current situation. 

Within the two trading sessions (9 and 10 March), DSEX recovered 280 points to close at 5,290, mostly riding on large-cap blue-chip stocks, including banks.

On Tuesday, the DSEX surged 148 points, fuelled by price gains in shares of banks and telecom sector stocks with 87% of issues advancing after absorbing the recent massive sell-offs.

Earlier, stocks suffered a highest single-day fall in six years on Sunday, the first trading session of the week as escalating geopolitical tensions in the Middle East triggered panic selling across the market.

The index plunged 231 points, or 4.42%, to close at 5,008, hitting a two-month low and marking the biggest one-day decline since the Covid-19 pandemic era.

The other major indices – DSES, surged by 3.90 points to 1,062 and DS30 with 30 leading companies and is considered the exchange's investable index, declined 0.81 points.

EBL Securities in its daily market commentary said that the capital bourse displayed a mixed trading pattern as investors remained watchful amid ongoing developments surrounding the Middle East conflict, prompting the benchmark index to close largely on a flat note.

"Investors were active on both sides of the trading fence, while cautious investors utilized the recent market recovery to lock in gains from sector-specific large-cap scrips and preferred to observe the market's trend," it said. 

Meanwhile, price appreciation was evident in several speculative and momentum-driven stocks as opportunistic investors continued to chase potential quick gains.

On the sectoral front, Pharma accounted for the highest share of turnover by 18.4%, followed by Bank 16.3% and Textile 11.4%. In the previous two trading sessions, bank stocks lead in strong recovery as most banks price surges. 

Of the 391 issues traded, 236 advanced, 98 declined, and 57 remained unchanged.

People's Leasing topped the gainer list hitting upper circuit, a highest single day limit capped by the regulator, by 10% to Tk3.3 each at the DSE.

Followed by Fareast Finance by 10% to Tk3.3 each, Fas Finance by 10% to Tk3.3 each, HR Textile by 9.86% to Tk21.1 each, and Anlima Yarn by 9.73% to Tk20.3 each.

While on the losing side, National Bank topped the loser list as its shares price fell by 5.55% to Tk5.1 each, followed by Tung Hai Knitting by 5.40% to Tk3.5 each, Mithun Knitting by 3.63% to Tk15.9 each.

The port city bourse, CSE, also settled on a positive territory. The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) advanced by 31.5 points and 48.5 points, respectively.