Turnover hits 30-day high as stocks rebound
Stocks rebounded today, riding on large and mid-cap gains, after a three-day losing streak driven by fears of US tariffs.
Meanwhile, turnover at the Dhaka Stock Exchange (DSE) hit Tk527 crore – the highest in 30 trading sessions.
On 25 February, the turnover was Tk607 crore; since then, it had gradually declined below Tk500 crore.
On Wednesday, the DSEX, the broad index of the DSE, gained 10.2 points to settle at 5,196, up from 5,186 in the previous session.
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While the DSE Shariah Index rose by 2.58 points to 1,169, the DS30, the blue-chip index, declined by 2.89 points to 1,921.
According to DSE data, the market opened on a positive note, with the DSEX gaining around 30 points early in the session.
The upward momentum continued until 1pm, but later, a wave of share selloffs gripped the market, dragging down the indices.
However, the market managed to close in the green, snapping a three-day losing streak.
Of the traded stocks, 144 scrips saw price increases, 193 declined, and 58 remained unchanged.
Market insiders attributed the positive outcome to the extension of the tenure of banks' capital market special funds, which are used to inject liquidity into the capital market.
On Tuesday, considering the current capital market situation and aiming to ensure overall stability of the financial sector, the Bangladesh Bank extended the tenure of banks' capital market special funds by approximately 22 months, until 31 December 2026.
Additionally, banks that had formed these special funds and invested in the stock market are now required to gradually reduce their investments within the extended period, according to a central bank circular.
Following feedback from capital market stakeholders, banks, and its own analysis, the central bank decided to extend the tenure by 22 months, or until December 2026.
The special fund, aimed at enhancing liquidity in the capital market, was introduced in 2020 during the pandemic, allowing each bank to create a Tk200 crore fund with a five-year tenure. The tenure of the fund expired in February this year.
EBL Securities, in its daily market commentary, noted that the benchmark index of the DSE managed to close in the green after three consecutive sessions of correction. It withstood selling pressure in the latter part of the session as investors held firm positions in certain large and mid-cap scrips, with optimism somewhat rebounding amid sustained investor participation across the trading board.
Buyers remained predominant, pulling the DSEX up by around 35 points within the first hour of the session.
However, some cautious selling during the late session eroded most of the intraday gains, as concerns over potential US tariffs prompted investors to maintain a watchful stance, the commentary added.
On the sectoral front, the pharmaceuticals and chemicals contributed the highest share to total turnover at 16.8%, followed by engineering at 10.4%, and life insurance at 9.5%.
Most sectors displayed positive returns, with cement up by 2.3%, fuel by 1.9%, and life insurance by 1.6% – the most notable performers on the bourse today.
Top gainers included Confidence Cement, which rose by 10% to Tk55, followed by JMI Syringes and Medical Devices with a 9.95% gain to Tk152.5, Padma Life Insurance with a 9.91% rise to Tk25.5, Doreen Power with a 9.85% increase to Tk22.3, and Heidelberg Cement with an 8.72% gain to Tk251.6.
Top losers were led by Beach Hatchery, which fell by 9.91% to Tk89 per share, followed by Newline Clothing with a 9.30% drop to Tk7.8, Sonargaon Textile with a 7.43% fall to Tk36.1, Phoenix Finance with a 7.14% decrease to Tk3.9, and EBL First Mutual Fund with a 6.55% decline to Tk5.7.
The port city bourse, Chittagong Stock Exchange, however, ended on a mixed note. The Selective Categories Index advanced by 5.2 points, while the All-Share Price Index declined by 3.0 points.
