Stocks snap losing streak as interest in blue-chip shares rises

Stocks at the Dhaka Stock Exchange (DSE) snapped a bearish trend in the outgoing week before Eid-ul-Adha, as investors renewed their buying spree in blue-chip and low-priced stocks, pushing the indices into positive territory.

However, turnover at the DSE remained sluggish, declining by 39% week-on-week to Tk964 crore amid lower investor participation and political uncertainty fears.

Average daily trading also fell by 8.55% to Tk241 crore, according to the bourse's weekly report.

DSEX, the broad index, gained 71.2 points, or 1.5%, to settle at 4,709 points by the end of the week, while DS30, the blue-chip index, gained 32.74 points to 1,762 and DSEX by 17.54 points to 1,028.

Of the traded stocks, 229 witnessed price surges, 61 remained unchanged, and 104 declined. 19 stocks are not traded throughout the week, as per DSE.

Stock trading was held for only four sessions instead of the usual five due to Eid holidays.

However, in the previous week, trading days were extended to six as the government added an extra day for Eid vacation.

Stock trading will resume on 15 June after a 10-day Eid vacation.

According to the DSE's weekly report, eight of the top ten turnover stocks from 1 to 4 June belonged to the A category – companies that paid at least a 10% dividend to investors. Only two were from the B category.

Meanwhile, among the top gainers, four were A category stocks, four were from the B category, and two were Z category stocks.

Z category stocks dominated the top losers' list, accounting for six of the ten worst performers. Three were from the A category, while only one company represented the B category.

EBL Securities, in its weekly commentary, said that the benchmark index of the capital bourse retraced from its bearish headwind this week (1 to 4 June) as investor sentiment was buoyed by bargain hunting amid budgetary expectations.

"The market began this week by witnessing renewed buying interests in certain blue chip and low paid-up scrips which underwent significant corrections during the market's prolonged downturn," it said.

"Despite mixed investor reactions to the budget's lack of any strong immediate stimulus, optimism over proposed incentives aimed at the broader development of the capital market helped the benchmark index to somewhat recover from the brief pessimism, though most investors stayed on the sidelines to observe post-budget market momentum," it added.

Investors were mostly active in Bank sector as the banks contributed the highest by 21.6% in the total turnover. The Food sector followed with 14.1%, and the Pharmaceuticals sector contributed 11.2%.

Aftab Autos, a Z category stock, led the top gainer list as its shares price surged by 14.90% to Tk29.30 each, followed by Desh Garments by 14.50% to Tk75.80 each, ML Dyeing by 12.35% to Tk9.10 each, Sonali Aansh by 11.89% to Tk156.20 each, and Titas Gas by 11.11% to Tk19 each.

On the other hand, People's Leasing and Financial Services topped the loser list as its shares price dropped by 10% to Tk1.80 each, followed by Shurwid Industries by 8.70% to Tk6.30 each, Midland Bank by 8.12% to Tk24.90 each, Uttara Finance by 8.11% to Tk10.20 each, and Rupali Insurance by 7.69% to Tk18 each.