Bargain hunters lift DSEX by 44 points as stocks extend recovery

The DSEX, the benchmark index of the DSE, gained 43.92 points, or 0.81%, to settle at 5,436.74, up from 5,392.82 in the previous session.

The country’s stock market extended its recovery today (10 November) as bargain hunters returned to recently corrected stocks, triggering broad-based buying across sectors and lifting the Dhaka Stock Exchange (DSE) benchmark index by nearly 44 points.

The market sustained its upward momentum throughout the session, with buying interest strengthening towards the close. However, investors remained cautious amid ongoing unrest and uncertainty in the country.

The DSEX, the benchmark index of the DSE, gained 43.92 points, or 0.81%, to settle at 5,436.74, up from 5,392.82 in the previous session.

The market opened on a positive note and maintainyesed its upward trend throughout the day. Buying in recently corrected stocks supported the rally, while increased investor participation in the final hour helped the index close firmly in positive territory.

Turnover edged up 0.58% to Tk658.50 crore from Tk654.71 crore in the previous session, indicating a marginal improvement in trading activity.

According to DSE data, 202,478 trades involving 21.59 crore shares and units were executed during the session.

Of the 384 issues traded, 264 advanced, 68 declined and 52 remained unchanged, reflecting broad-based buying across the market. The significantly higher number of advancing stocks suggested that the rally was not confined to a handful of large-cap companies.

Among other indices, the blue-chip DS30 gained 7.94 points, or 0.39%, to close at 2,057.41, while the Shariah-based DSES rose 8.97 points, or 0.86%, to 1,053.69. The large-cap CDSET also advanced 0.45% to 1,092.77.

In its daily market commentary, EBL Securities said the market resumed its recovery following a brief sell-off, as bargain hunting in recently corrected stocks triggered broad-based buying across the bourse. However, investors remained cautious amid ongoing unrest in the country.

The brokerage also observed that market momentum strengthened towards the end of the session as accumulation and investor participation gathered pace, helping the benchmark index maintain its upward trajectory.

Textile leads turnover, travel tops sectoral gains

On the sectoral front, textile stocks accounted for the largest share of market turnover at 18.9%, followed by general insurance at 13% and fuel and power at 12.8%.

In terms of sectoral performance, travel stocks led the gains, rising 5.1%, followed by ceramics at 4% and paper and printing at 2.8%.

Telecommunications stocks posted the steepest sectoral decline, falling 0.3%, while fuel and power and mutual funds slipped marginally by 0.1% each.

According to BRAC EPL Stock Brokerage, block trades accounted for 6.5% of total market turnover, reflecting a notable contribution from large negotiated transactions.

Shahjibazar Power Company Limited was the most traded stock by value, recording a turnover of Tk28.7 crore, although its share price fell 0.8%.

Most large-cap sectors also posted positive returns. Food and allied stocks led the gains, rising 1.27%, followed by non-bank financial institutions (NBFIs) at 0.71%, pharmaceuticals at 0.56%, engineering at 0.53% and banks at 0.52%.

However, fuel and power and telecommunications declined 0.12% and 0.33%, respectively, reflecting weakness in these heavyweight sectors.

Meanwhile, the Chittagong Stock Exchange (CSE) also closed higher. Its Selective Categories’ Index (CSCX) advanced 43.4 points, while the All Share Price Index (CASPI) gained 51.9 points.

Source: The Business Standard