DSEX recovery shows signs of strength of blue chips

The Dhaka bourse on Thursday bounced back strongly, extending the gaining streak for the second consecutive session, as a majority of the listed securities experienced appreciation.
Investors' increased participation in blue chips exerted significant influence on the broad index, leading to a sharp gain.
Most of the blue chips experienced appreciation. Top 10 index pullers were from this category.
Of the 30 blue-chip stocks, 24 advanced, five remained unchanged while only one was subject to correction on the Dhaka Stock Exchange (DSE).
Robi Axiata had the highest contribution to the index gain, having appreciated by 7.89 per cent. The company was also on the chart of the day's top 10 gainers.
After losing 192 points in the four sessions through Tuesday, the DSEX recovered 127 points on Wednesday and Thursday.
The market opened the day's session with a positive note and the DSEX exhibited a steady upward trend till midsession.
For the rest of the session, the broad index remained flat, keeping the day's initial gains unaffected. Finally, the DSE closed the session with a rise of 69 points.
Owing to the rise of blue-chip stocks, DS30 index saw an increase of 1.25 per cent or 25.43 points to close at 2057 points.
The Shariah-based index, DSES advanced 1.21 per cent or 15 points to close at 1293 points.
The recent index fall was rendered by correction of junk stocks, while blue-chip companies started witnessing investors' interest in them.
Experts say a change in investors' behaviour is being observed. They have started rebalancing their portfolios with stocks having strong fundamentals. Hence, blue chips have begun climbing up, driving the broad index up.
Similar to Robi, Heidelberg Cement jumped on the Dhaka bourse on Thursday. The company also made it to the chart of the day's top 10 gainers.
The top 10 index pullers include Robi Axiata, Square Pharmaceuticals, Orion Pharma, and Beacon Pharmaceuticals.
The 10 companies together added 27.81 points to the broad index of the premier bourse.
Grameenphone, however, saw a marginal correction on the premier bourse.
Thursday's gainers' list indicates that the market got support from small- and mid-cap companies too.
Of the 397 issues traded, 303 advanced, 44 declined and 50 were unchanged on the DSE.
A higher participation by investors helped the turnover cross Tk 6 billion after six sessions.
Investors' participation was mostly concentrated on the pharmaceuticals & chemicals sector which grabbed 17.4 per cent of the market turnover, followed by the engineering and textile sectors.
Best Holdings topped the scrip-wise turnover chart, with a transaction of Tk 298 million, followed by LafargeHolcim Bangladesh, Golden Son, and Central Pharmaceuticals.
Bangladesh Monospool Paper Manufacturing Company was the number one gainer, with a rise of 9.98 per cent to Tk 194 each share.
On the other hand, Jute Spinners was the day's worst loser after shedding 0.65 per cent to Tk 356 per share.
A majority of the scrips listed on the Chittagong Stock Exchange (CSE) also witnessed a price elevation on Thursday. Of the 238 issues traded, 173 advanced, 47 declined and 16 were unchanged.
CASPI, benchmark index of the port city bourse, advanced 1.05 per cent or 176 points to 16937 points. The CSE posted a turnover of Tk 183.24 million.

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