DSEX gains 71 points as stocks extend recovery for second day

The benchmark DSEX rose 1.34% to 5,413.04 points, while turnover increased 23.6% to Tk645.43 crore as bargain hunting and the easing of restrictions on selected frozen BO accounts supported the rally.

The country’s stock market extended its recovery for a second consecutive session today (5 November), following sharp losses in recent sessions, as bargain hunters returned to pick up beaten-down stocks while cautious investors remained active on both sides of the trading floor.

The positive momentum was driven partly by the Bangladesh Securities and Exchange Commission’s (BSEC) decision to ease restrictions on selected beneficial owner (BO) accounts that had remained frozen for more than two years, alongside renewed buying interest in recently battered stocks. However, persistent market uncertainties and ongoing unrest continued to weigh on investor sentiment.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) gained 71.41 points, or 1.34%, to close at 5,413.04 points today, up from 5,341.63 points in the previous session.

The market opened on a positive note, carrying forward the recovery momentum from Wednesday. Sustained buying interest kept the benchmark index in positive territory throughout the session, with the index maintaining its upward trajectory before closing near the day’s higher levels.

Market turnover also increased significantly, indicating stronger participation from investors. The DSE recorded transactions worth Tk645.43 crore, up 23.6% from Tk522 crore in the previous trading session.

Among the other indices, the blue-chip DS30 rose 31.01 points, or 1.52%, to 2,068.63 points, while the Shariah-based DSES advanced 10.83 points, or 1.04%, to 1,047.71 points.

Market participants said the recent correction had brought many stocks to attractive price levels, prompting some investors to resume buying. The relaxation of restrictions on selected long-frozen BO accounts also helped improve market sentiment by allowing affected investors to resume trading and inject fresh funds.

According to EBL Securities’ market review, the market staged another recovery following the sharp selloff in recent sessions as bargain hunters returned to accumulate equities at attractive price levels.

The brokerage also noted that declining international oil prices and positive developments surrounding the US midterm elections contributed to improved investor sentiment, providing additional support to the market’s recovery.

On the sectoral front, Textile accounted for the largest share of market turnover at 21.6%, followed by General Insurance at 13% and Fuel and Power at 10.6%, reflecting significant trading activity in these sectors.

In terms of sectoral returns, Ceramic led the gainers with a 4.8% increase, followed by Paper at 3% and Financial Institutions at 2.3%. Most sectors recorded positive returns during the session, although some sectors faced marginal corrections.

On the downside, Mutual Fund, Telecom and Textile recorded declines of 0.7%, 0.5% and 0.1%, respectively.

Of the 395 issues traded on the DSE, 249 advanced, 81 declined and 65 remained unchanged, indicating broadly positive market breadth and stronger buying interest across a wide range of securities.

The Chittagong Stock Exchange (CSE) also closed higher, reflecting the broader recovery across the country’s capital market. Its selected index, CSCX, gained 88.4 points, while the All Share Price Index (CASPI) advanced 138.1 points.

Source: The Business Standard