Indices continue upward momentum for four consecutive days
The indices of the Dhaka Stock Exchange (DSE) continued their upward momentum for the fourth consecutive session as cautious investors took positions in lucrative, undervalued stocks. As a result, turnover rose by 17.9% to Tk909 crore from Tk771 crore compared to the previous session.
The prime index DSEX of the main bourse crossed the 5,500 mark for the first time in nearly two months, rising by 61 points to settle at 5,559.
Meanwhile, the blue-chip index DS30 increased by 13 points to reach 1,964 points, and the Shariah-compliant stock index DSES went up by 6 points to 1,215 points.
Among the traded scrips, 305 advanced, 69 declined, and 24 remained unchanged. Blue-chip stocks, including those with low paid-up capital, increased points across the bourse indices.
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Notably, British American Tobacco Bangladesh Company contributed 13 points, and Grameenphone contributed 10 points to the premier index of the DSE.
Other significant contributors included United Power Generation & Distribution Company, Summit Power, Titas Gas, BRAC Bank, and Dutch-Bangla Bank PLC.
LR Global Bangladesh Mutual Fund One topped the list of gainers, followed by Khan Brothers PP Woven Bag Industries, Prime Finance First Mutual Fund, Doreen Power Generations and Systems, ICB AMCL Third NRB Mutual Fund, and Bay Leasing & Investment Limited.
New Line Clothings also placed among the top losers, along with Walton Hi-Tech Industries, Zahintex Industries, ICB AMCL CMSF Golden Jubilee Mutual Fund, Desh General Insurance Company, and Rahima Food Corporation.
Sea Pearl Beach Resort & Spa, British American Tobacco Bangladesh Company, Orion Pharma, Salvo Chemical Industry, Asiatic Laboratories, Taufika Foods, and Lovello Ice-cream PLC were the most traded stocks on the Dhaka bourse.
Market insiders said after the June closing, institutional investors reinvested funds in the capital market, boosting momentum with new injections as blue-chip stocks are undervalued. They anticipate domestic economic growth in the next quarter, positioning themselves ahead of positive economic signs.
Additionally, investors subscribed over Tk2,400 crore from the secondary market for the Techno Drugs IPO. After the shares were allocated, the company refunded the unused funds to the respective investors. These refunded funds were reinvested in the market, contributing to the index's gain.
EBL Securities wrote in its daily market commentary that the capital bourse extended its gaining streak for the fourth consecutive session owing to the continuous buy dominance of buoyant investors. The market participation rebounded, with the benchmark index and market turnover reaching a two-month high.
According to the commentary, the market recovery has been driven by continuous price appreciation in most stocks as investors chased quick rallies amid heightened optimism. However, some investors chose to book profits, preferring to observe the sustainability of the current upbeat market trend.
On the sectoral front, the Pharma sector accounted for 15.7% of the total turnover, followed by the Food sector at 11.1% and the Bank sector at 9.8%. Most sectors posted positive returns, with Mutual Funds rising 4.3%, Jute and Paper each up 3.8%. However, the Engineering sector saw a slight correction of 1.0%, and the Services sector corrected by 0.4%.
The port city bourse, Chittagong Stock Exchange (CSE), also settled in green terrain. The CSCX and CASPI indices increased by 145.5 and 249.5 points, respectively. The bourse saw a turnover of Tk180 crore by the session's close. Out of 275 traded issues, 212 advanced, 42 declined, and 21 remained unchanged.
