Dhaka stocks open higher as bargain hunting lifts DSEX

Dhaka stocks opened higher on Thursday as investors took advantage of recent price corrections to pick up shares, although persistent concerns over the nationwide gas and electricity crisis continued to weigh on market sentiment.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), gained 32 points, or 0.58 per cent, to reach 5,673 at 10:30 am, when the report was filed.

The DS30 index, comprising blue-chip stocks, advanced 8 points to 2,134, while the Shariah-based DSES index rose 7 points to 1,134.

Market insiders said significant corrections in recent sessions had brought many stocks to relatively attractive price levels, prompting bargain hunters to take fresh positions.

However, they said the recovery remained fragile as investors continued to be concerned about the ongoing energy crisis and its potential impact on economic activity and corporate performance.

Trading activity remained subdued despite the positive market movement. Turnover on the premier bourse stood at Tk 617 million during the first one and a half hours of trading, indicating limited investor participation.

Market breadth, meanwhile, was strongly positive, with 310 issues advancing against only 22 declining, while 52 remained unchanged.

The broad-based gains suggested that buying interest was spread across a large number of stocks, although the relatively low turnover indicated that investors were still cautious about committing significant funds.

Sharp Industries emerged as the most-traded issue during the period, with shares worth Tk 74 million changing hands.

The Chittagong Stock Exchange (CSE), however, opened lower despite the positive trend on the DSE. Its All Share Price Index (CASPI) lost 13 points to 15,148, while the CSE Selective Categories Index (CSCX) shed 11 points to 9,248 at 10:30 am.

The mixed movement between the two bourses reflected continued uncertainty in the market, with bargain hunting supporting selected shares while broader concerns prevented a stronger recovery.

Source: The Business Standard