The benchmark index of the Dhaka Stock Exchange (DSE) saw a second consecutive week of gains, buoyed by sustained investor interest in banking stocks amid growing political clarity ahead of the national election.
Market analysts attributed the ongoing recovery to broad-based investor participation, with opportunistic buying in selective low-cap stocks further providing momentum. Sector-specific developments also acted as near-term catalysts for price appreciation.
Apparently, both retail and institutional investors remained active on the trading floor, injecting fresh funds into blue-chip stocks, which had already fallen to attractive price levels following a recent market correction.
According to a leading stockbroker, the market indices continued to show resilience as buyers dominated across various sectors. Improved sentiment, driven by the ongoing earnings season, fuelled further price increases in selective large-cap stocks.
During the week, 60 listed companies released their quarterly and half-yearly financial statements. While cautious sentiment prevailed ahead of the national election, investors made their decisions based on the companies' financial performance.
Despite some caution, the stockbroker predicted a positive outlook for the stock market following the elections, supported by potential political stability and macroeconomic recovery.
This week, the market saw five trading sessions. Of them, the first and the last sessions closed marginally lower, while the rest three sessions closed higher.
The prime DSEX index finally settled the week nearly 55 points or 1.07 per cent higher at 5,154. Over the past two weeks, the DSEX has gained a total of 195 points.
EBL Securities, in its weekly market analysis, said the market extended its upward trajectory amid broad-based participation as investors accumulated perceived undervalued blue-chip stocks, while additional momentum stemmed from opportunistic buying in selective low-cap stocks following sector-specific developments.
Although the benchmark index of the capital bourse began the week on a gloomy note as investors capitalized on the recent market recovery, it could not offset the upbeat vibe as buyers sustained their hold over the market's momentum, enabling market indices to close higher, said the stockbroker.
The blue-chip DS30 index, a group of 30 prominent companies, also rose 24 points to close at 1,986 while the DSES index, which represents Shariah-based companies, surged 9 points to 1,034.
Price gain of selective large-cap stocks, including Islami Bank, BRAC Bank, Pubali Bank, Square Pharma, and Pragati Life Insurance, largely contributed to the market surge. These five stocks accounted for a 75-point rise in the DSEX.
Islami Bank Bangladesh alone added more than 41-point to the prime index as the bank stock jumped 20 per cent during the week. BRAC Bank also accounted for 15.4 points rise of the major index.
The total market turnover for the week stood at Tk 28.97 billion, slightly higher than Tk 28.79 billion recorded in the previous week.
Accordingly, the average daily turnover stood at Tk 5.79 billion, up 0.63 per cent from the previous week's average of Tk 5.76 billion.
Investors were mostly active in the general insurance sector, which accounted for 17.6 per cent of the total market turnover, followed by pharma (14.2 per cent) and banking sector (10.7 per cent).
However, there is also a cause for concern, as 'Z' category stocks continued to dominate the top 10 weekly gainers' chart, indicating potential market manipulation.
Seven such stocks -- Meghna Condensed Milk, Meghna Pet Industries, GBB Power, Aramit Cement, GSP Finance, Shyampur Sugar Mills, and Bay Leasing -- were among weeks' top 10 gainers, soaring between 60 and 15 per cent this week.
Despite these gains, the overall market sentiment was bearish, as losers outnumbered gainers. Of the 389 issues traded on the DSE, 204 closed lower, 152 saw price increases, and 33 remained unchanged.
Major sectors showed positive performance. The banking sector posted the highest gain of 4.2 per cent, followed by power, telecoms, pharma and food sectors.
Square Pharma became the most-traded stocks, with shares worth Tk 930 million changing hands, closely followed by Dominage Steel, Orion Infusion, Pragati Life Insurance and Asiatic Laboratories.
The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI) rising 209 points to close at 14,469, while the Selective Categories Index (CSCX) surged 135 points to 8,964.
The port city bourse traded 7.57 million shares and mutual fund units with turnover value of Tk 442 million.
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