Weekly Market Review: Dhaka Stock Exchange Witnesses Modest Gains Amidst High Turnover
In the latest weekly market review, the Dhaka Stock Exchange (DSE) showcased a mixed performance with the benchmark DSEX index slightly up by 0.17 percent, closing at 5,507 points. Despite a strong start to the week, the market faced a correction in the latter half, reflecting the cautious approach of investors who opted to book profits on stocks that had seen significant appreciation. The average daily turnover saw a remarkable increase of 44 percent, indicating heightened trading activity on the prime bourse.
Key highlights from the week include the surge in buying activity in stocks such as Square Pharma and BAT Bangladesh, contributing positively to the weekly index. However, declines in sectors like pharmaceuticals and food slightly offset these gains. The market also saw fresh funds entering, spurred by refunds from the latest IPO subscription, leading to a rebound in investor participation.
Despite the overall modest gain in the benchmark index, the market dynamics suggest a cautious optimism among investors, with a keen eye on upcoming listings and sectoral performances.
Weekly Market Review: Dhaka Stock Exchange Witnesses Modest Gains Amidst High Turnover
In a week marked by cautious optimism and strategic profit bookings, the Dhaka Stock Exchange (DSE) saw its benchmark index make modest gains, continuing its upward trajectory for the fourth consecutive week. Despite a mid-week reversal that saw some of the gains eroded, the prime bourse managed to close the week on a positive note, buoyed by increased investor participation and a significant jump in average daily turnover.
The DSE’s benchmark DSEX index ended the week slightly higher, up by 9 points or 0.17 percent, closing at 5,507. The week started strong with the index surging 97 points in the first three days, only to relinquish almost 88 points in the subsequent sessions. Market analysts from EBL Securities noted, "The market showed signs of revival early in the week but shifted back to correction mode, reflecting the cautious stance of investors."
Notable movements were seen in shares of Square Pharma, Khan Brothers PP Woven Bag Industries, BAT Bangladesh, and National Bank, which collectively contributed over 18 points to the weekly index. However, this upward momentum was partially offset by declines in Beximco Pharma, Renata, Beacon Pharma, Unilever Consumer Care, and Linde Bangladesh.
The market’s dynamics were influenced by investors opting to book profits on stocks that had appreciated 10 to 15 percent in recent trading sessions. "The price appreciation in some stocks led investors to realize gains, especially towards the week’s end," said Md. Shakil Rizvi, managing director of Shakil Rizvi Stock Ltd. He also highlighted the selling activity as some investors liquidated holdings to free up funds for the upcoming debut of Techno Drug shares on the market.
Despite the mixed performance in indices, with the blue-chip DS30 and the Shariah-based DSES index closing in the red, the market’s liquidity saw a notable improvement. The total turnover for the week soared to Tk 44.43 billion, up from Tk 24.63 billion the previous week, marking a 44 percent increase in daily average turnover to Tk 8.89 billion.
The pharmaceutical sector led the turnover chart, accounting for 16.5 percent of the week’s total, followed by textiles and food sectors. While major sectors showed mixed results, general insurance, mutual funds, and banking sectors posted gains, contrasting with losses in engineering, non-bank financial institutions, telecom, food, pharma, and power sectors.
Investor participation was robust, with a single-day market turnover crossing the Tk 10 billion mark for the first time in two months. This resurgence in activity was partly attributed to investors reallocating funds received from refunds of the latest IPO subscription.
The Chittagong Stock Exchange (CSE) also ended the week on a high note, with its All Share Price Index (CASPI) and Selective Categories Index (CSCX) posting gains.
As the market navigates through profit-booking and strategic investments, the coming weeks will be crucial in determining whether the DSE can sustain its momentum amidst fluctuating investor sentiment and external market forces.
For more updates, stay tuned to our financial news section.
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