The equities benchmark index reversed losses in the outgoing week, snapping a three-week losing streak, as bargain hunters chased rumour-based stocks in anticipation of quick gain.
Although the overall investment appetite remained subdued, the allure of potential quick gains prompted a section of investors to seize opportunities in sector-specific stocks, which led the market indices to log marginal recovery.
All five trading days of the week managed to edge higher as the market tried to recover from the recent sell-off with the increased participation of investors.
The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), finally settled 29.53 points or 0.47 per cent higher at 6,252.56, after losing nearly 48 points in the past three straight weeks.
Top positive index contributors were Olympic Industries, Central Pharma, LafargeHolcim, SK Trims Industries and Emerald Oil Industries as they jointly accounted for one-third of the index rise.
Two other indices also ended higher. The DS30 Index, which consists of blue-chip companies, rose nearly 7 points to 2,115 and the DSES index, which represents Shariah-based companies, gained more than 7 points to 1,360.
EBL Securities, in its weekly analysis, said buyers dominated the trading floor throughout the week as bargain hunters chased quick-gain opportunities in sector-specific and rumor-based stocks, taking advantage of the prolonged downbeat vibe in the market.
However, cautious investors are still reluctant to take long positions in equities owing to subdued confidence regarding the market momentum stemming from the prevailing macroeconomic and political concerns, according to the stockbroker.
The participation of investors also increased as the total turnover of the week stood at Tk 22.80 billion, up from Tk 19.08 billion in the week before.
Accordingly, the average daily turnover stood at Tk 4.56 billion in the outgoing week, which was almost 20 per cent higher than the previous week's average of Tk 3.81 billion.
Meanwhile, a good number of stocks may be downgraded to 'Z' category from February 28 next year for failing to give dividends to shareholders on a yearly basis as the stock market issued a directive in this regard during the week.
The Bangladesh Securities and Exchange Commission (BSEC) issued a directive in this regard on Monday, withdrawing the relaxed notification that was issued during the pandemic on category change of listed companies.
But there was no immediate negative impact on the stock prices of low-performing shares during the week. Rather, some loss-making companies' stock prices kept rising.
Khulna Printing and Packaging, for example, soared 16 per cent further during the week to Tk 31.20 on Thursday although the company has not declared dividend since FY21.
Majority of the traded shares saw price appreciation, as out of 379 issues traded, 130 closed higher, 31 ended lower and 218 remained unchanged on the DSE trading floor.
Most sectors closed higher, with the ceramic sector posted the highest return of 2.2 per cent gain, followed by IT, mutual fund and tannery. Only services and real estate and travel & leisure sectors saw price correction.
The engineering sector kept its dominance in the weekly turnover chart, accounting for 16 per cent of the week's total turnover, followed by pharma and food sectors.
Small-cap stocks dominated the turnover list as Central Pharmaceuticals became the most-traded stocks, with shares worth Tk 1.21 billion changing hands, followed by Khulna Printing & Packaging, Fu-Wang Food, Yeakin Polymer and Emerald Oil Industries.
Prime Finance First Mutual Fund was the week's top gainer, soaring 38.41 per cent while Eastern Lubricant was the worst loser, shedding 8.08 per cent.
The Chittagong Stock Exchange (CSE) also rebounded from three-week losses, with its All Share Price Index (CASPI) gaining 58 points to settle at 18,537 and the Selective Categories Index (CSCX) rising 34 points to close at 11,085.
The port city's bourse traded 18.25 million shares and mutual fund units with a turnover volume of Tk 601 million.
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