Stocks rally but banking shares lose ground
Investor participation strengthened as turnover rose by 22% to Tk976 crore
The country's capital market extended its winning streak into a third consecutive session yesterday, with the benchmark index of the Dhaka Stock Exchange (DSE) ending higher despite a notable decline in banking stocks.
The key index, DSEX, gained 18.42 points, or 0.34%, to close at 5,419. With this rise, the index has now added a total of 105 points over the last three trading sessions. Market capitalisation also increased by around Tk6,000 crore during the day.
The blue-chip DS30 advanced by 5 points, or 0.28%, to close at 2,101.84, while the Shariah-compliant DSES rose 1.02% to 1,184.53.
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Investor participation strengthened as turnover rose by 22% to Tk976 crore, indicating fresh enthusiasm among both retail and institutional investors. Market breadth was firmly positive, with 242 issues advancing against 94 declining, while 46 remained unchanged.
Sector-wise, engineering stocks led the rally with a 2% gain, followed by pharmaceuticals which rose 1.18%. Non-bank financial institutions added 0.92%, while fuel and power advanced 0.62%. Food and allied gained 0.56%, and telecommunication edged up 0.25%.
In contrast, the banking sector faced significant pressure, shedding 1.39%, dragging several financial stocks into the red.
Market insiders said investors are continuing to chase opportunities in non-financial sectors such as engineering, pharmaceuticals, and power, while banks are struggling under the selling pressure aimed to book quick profit from recent rally. Despite the dip in bank stocks, overall optimism in the market remains intact as the DSEX maintains upward momentum.
According to the daily market review of BRAC EPL Securities, the market closed in green territory despite the weakness in banks, thanks to strong performances in selective large-cap sectors.
EBL Securities said in its daily market review, the benchmark index of the capital bourse extended its gaining streak for the third consecutive session as renewed buying interest in major large-cap stocks continued to drive market momentum.
While some mid-session profit-taking briefly slowed the rally, buyers' quickly regained control, helping market indices close on the positive territory, it added.
However, banking sector stocks took a breather after recent price appreciations from consecutive sessions of gains, EBL Securities noted.
The sectoral breakdown showed pharmaceutical shares leading in activity and turnover, accounting for 19.9% of total transactions, followed closely by banks at 12.4% and textiles at 11.1%.
Bangladesh Shipping Corporation, City Bank, Beximco Pharmaceuticals, Orion Infusion, and Techno Drugs emerged as the day's top turnover leaders, reflecting heightened trading activity in these scrips.
Among the top gainers were National Tea, which surged 9.98%, Sonali Paper up 9.97%, ACI Formulations rising 9.95%, Bangladesh Autocars climbing 9.92%, and Information Services advancing 9.86%.
On the other hand, First Security Islami Bank suffered the biggest fall of the day with a 5.40% decline, followed by Mercantile Bank, Trust Islami Life Insurance, Rahim Textile, and ICB Employees Provident Mutual Fund.
The Chittagong Stock Exchange (CSE) also mirrored the upbeat mood of the Dhaka bourse. The Selective Categories Index (CSCX) rose by 37 points to close at 9,307, while the All-Share Price Index (CASPI) gained 61 points to reach 15,158. Turnover at the port city bourse stood at Tk18.78 crore.
