DSEX hits eight-month high as blue-chips lead market rally
Despite the index rally, market participation dipped slightly, with daily turnover falling by 16%
In a bullish turn driven by renewed investor optimism, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) soared by 50 points on Tuesday (22 July), closing at 5,270 — its highest level in eight months.
This marks the sixth straight session of gains for the index, which has now added 209 points over that period. The last time DSEX crossed the 5,300 mark was on 18 November last year.
Despite the index rally, market participation dipped slightly, with daily turnover falling by 16% to Tk722 crore, indicating some caution among retail investors.
Blue-chip stocks powered the uptrend, as the DS30 index jumped 1.67% to close at 2,030 points. Market insiders attributed the rally to growing interest in large-cap scrips, supported by improving macroeconomic indicators and increasing institutional participation.
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"Liquidity is gradually returning to the market, and we're seeing renewed activity from institutions, particularly in banking, telecom, and multinational stocks," said a senior analyst at a leading brokerage firm.
Of the 393 issues traded on the DSE, 173 advanced, 151 declined, and 69 remained unchanged.
EBL Securities said in its daily market review, the benchmark index of the capital bourse continued its bullish run, shrugging off the weakening momentum from the latter half of the previous session, as investors' buying interest remained resilient — particularly in the large-cap stocks.
Although the session started off with a mild, volatile movement in market indices, buyers retaining control in the subsequent period led the positive momentum to extend for six straight sessions, it added.
On the sectoral front, the banking sector accounted for the highest turnover, contributing 17.2% of total trade, followed closely by pharmaceuticals, 16.5% and engineering, 8.9%.
Sectors mostly displayed positive returns, out of which ceramic, food and engineering exhibited the most positive returns on the bourse, while life insurance, paper and general insurance exerted the most corrections.
Meanwhile, the Chittagong Stock Exchange (CSE) also ended the day in positive territory. The Selective Categories Index (CSCX) rose by 58 points, while the All Share Price Index (CASPI) gained 81 points.
