DSEX stages dramatic 95-point turnaround to end in green

Total turnover on the DSE saw a 5% uptick, reaching Tk571 crore.

The country’s premier bourse, the Dhaka Stock Exchange (DSE), witnessed a classic “V-shaped” recovery today (7 September), with the benchmark index staging a remarkable 95-point turnaround in the final hour of the trading session.

After a harrowing mid-session slump that saw the DSEX plunge below the psychological 5,500-point threshold, a surge of institutional buying interest helped the market erase its massive losses and settle on a positive note, according to the market insider.

The trading day began with significant volatility, and by 12:30pm, the DSEX had plummeted by 67 points, hitting an intraday low that triggered panic among retail participants. However, the momentum shifted abruptly in the afternoon. Between 12:30pm and 1:58pm, the broad index climbed sharply, recovering all lost ground and adding enough momentum to close at 5,567 points, up 8 points from the previous session.

Market insiders observed that the final-hour boost was primarily orchestrated by institutional investors and high-net-worth individuals. These “bargain hunters” identified the mid-session crash as an attractive entry point, moving in to accumulate fundamentally strong shares at multi-month lows. This professional intervention provided a much-needed lifeline to the market’s faltering momentum.

According to the daily market review by EBL Securities, the capital bourse finally found its footing after a prolonged downturn. The session was defined by a fierce tug-of-war between sellers and buyers. While intensified selling pressure dominated the first half of the day, the late-session buying spree in heavyweight scrips allowed the benchmark index to reverse its nearly 70-point intraday loss.

On the sectoral front, the textile sector emerged as the primary driver of liquidity, accounting for a massive 29.8% of the total turnover. It was followed by general insurance at 12.8% and the pharmaceutical sector at 12.0%. Sectoral returns were mixed, with textiles gaining 2.7% and the travel sector rising by 1.9%. On the flip side, the cement sector faced a correction of 1.1%, while the telecommunication segment also ended marginally lower.

The market breadth reflected the late-hour recovery, with 170 issues advancing compared to 150 that declined, while 63 remained unchanged.

Total turnover on the DSE saw a 5% uptick, reaching Tk571 crore.

Major index pullers that supported the rebound included Pubali Bank, Dominage Steel, Southeast Bank, Envoy Textile, and Malek Spinning.

Individual stock performance was highlighted by Tung Hai Knitting, which hit the 10% upper circuit limit. Other top gainers included Saiham Cotton, Premier Leasing, and Sea Pearl Beach Resort.

Conversely, Sena Insurance was the day’s top loser, shedding 9.97% of its value, followed by CAPM IBBL Mutual Fund and Prime Textile. On the liquidity front, Sharp Industries, Saiham Cotton, and Envoy Textile were among the most traded stocks of the day.

While the premier bourse ended in the green, the sentiment remained slightly dampened at the Chittagong Stock Exchange (CSE), where the broad CASPI index dropped 82 points to settle at 14,919. Turnover at the port city bourse stood at Tk18.84 crore.

Source: The Business Standard