DSE extends winning streak for 5th day
The benchmark DSEX index edged up by 7 points to finish at 4,840
The Dhaka Stock Exchange (DSE) extended its upward momentum for a fifth consecutive session yesterday, driven by active participation from investors aiming to qualify for capital market-related tax rebates for the 2024-25 fiscal year.
However, the market trimmed its early gains during the final hour of trading, as cautious investors resorted to profit booking.
The ongoing tension between National Board of Revenue (NBR) employees and the government also contributed to a sense of unease, dampening investor sentiment towards the close of the session.
The benchmark DSEX index edged up by 7 points to finish at 4,840. Meanwhile, the DSE Shariah Index (DSES) advanced by 2 points to 1,061. In contrast, the blue-chip index DS30 slipped by 4 points, settling at 1,817.
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Daily turnover on the DSE rose by 3.13% to Tk494 crore, compared to Tk479 crore in the previous session. Out of 394 traded scrips, 186 advanced, 148 declined, and 60 remained unchanged.
Islami Bank Bangladesh emerged as a key contributor to the market's positive performance, with its share price soaring 9.82% to Tk36.90. The private sector lender logged a turnover of Tk3.88 crore, significantly supporting the premier index.
Other blue-chip stocks that contributed to the session's gains included British American Tobacco Bangladesh Company, Robi Axiata, Grameenphone, BSRM Steels, Marico Bangladesh, Dutch-Bangla Bank, Linde Bangladesh, Investment Corporation of Bangladesh, and Olympic Industries.
Despite the positive close, market insiders expressed concerns about the sustainability of the momentum, citing broader economic uncertainties. Among these are fears that potential gas price hikes could raise production costs and squeeze corporate earnings in the upcoming quarters.
Among the top gainers were Islami Bank Bangladesh, HR Textile, Deshbandhu Polymer, Central Insurance Company, and DBH First Mutual Fund.
On the losing side were Aman Cotton Fibrous, New Line Clothings, Yeakin Polymer, Western Marine Shipyard, and Samata Leather Complex Ltd.
In its market commentary, EBL Securities noted that the recovery in the country's capital market moderated as cautious investors opted to book profits following a brief market uptick, although the benchmark index managed to stay in positive territory, primarily supported by a significant price appreciation in a major large-cap bank stock.
The market experienced some volatility as investors remained active on both sides of the trading fence, causing market indices to end the session on a flat note, it said. While the recent easing of adversities on the macroeconomic front and media reports of central bank support for struggling banks helped to lift investor sentiment, cautious investors opted to lock in recent gains and adopt a wait-and-see approach ahead of the fiscal year's end, according to the commentary.
On the sectoral front, the banking sector accounted for the highest turnover at 16.9%, followed by the food sector at 15.1% and the pharmaceutical sector at 12.5%.
Sector-wise performance was mixed. Among them, mutual funds (1.7%), food (1.3%), and financial institutions (1.3%) posted the highest gains. In contrast, jute (0.9%), life insurance (0.6%), and paper (0.5%) sectors saw the most notable corrections.
The port city bourse also closed in the green. The Selective Categories Index (CSCX) of the Chittagong Stock Exchange (CSE) rose by 44.8 points, and the All Share Price Index (CASPI) gained 80.0 points.
