Special Correspondent
The key index, DSEX, of the Dhaka bourse returned to positive territory this week despite an abrupt regulatory instability weighing on investors' sentiment in the first session of the week, as market recovery extended in the subsequent sessions.
The benchmark index DSEX gained 21.65 points or 0.42% and closed the week at 5,225.61 points. The blue-chip index DS30 (+0.63%) gained 11.88 points and stood at 1,901.56 points. The Shariah-based index DSES (+0.38%) gained 4.40 points and stood at 1,165.28 points.
Investors' participation in the market also increased by 7.8% to Tk 3,909 million as against Tk 3,627 million in the previous week.
Over the week, eight sectors were gainers in which Insurance, Tannery, and Travel were in the top position. On the other side, 10 sectors were losers, where FIs, Ceramic & IT were the top losers.
This week, the most popular scrip was ORIONINFU based on price & turnover growth, while the top gainer was SALAMCRST and the top loser was TITASGAS.
As BSEC is working relentlessly to support the liquidity of the market, the investors who are in a wait-and-see mode should engage themselves more by participating continuously in the market to take it to a new level. Weekly Stock Market Analysis suggests that despite short-term instability, the overall market direction remains positive, with selective buying interest keeping the momentum alive. All considered, the market may go somewhat bullish with lower trading activities for the upcoming week.
The market performed five sessions during this week. The market started negatively on Sunday (-0.57%) but showed positive performance on Monday (+0.32%) and remained positive throughout Tuesday (+0.16%), Wednesday (+0.32%), and Thursday (+0.18%).
The benchmark index returned to positive territory this week despite an abrupt regulatory instability weighing on investors' sentiment in the first session of the week, as market recovery extended in the subsequent sessions due to investors' continued buying activity in sector-specific and large script by capitalising on the corrections, according to EBL Securities' weekly review.
It also said investor confidence was reinstated as the regulatory environment stabilized, while optimistic investors sought to take positions in certain stocks with short-term gain potential, driving a four-day gaining streak for the broad index.
Analysts and brokerage houses attribute this positive movement to increased participation from institutional investors. With recent restrictions lifted, 13 funds managed by Race Management are more active in the market.
Reports indicate that several mutual funds and financial institutions, after a period of dormancy, have begun actively investing again. They are particularly focusing on large-cap, fundamentally strong stocks, triggering fresh buying pressure in the market.
Shamim Reza, a senior executive at Globe Securities, noted, "Institutional investments in large-cap stocks are on the rise. Companies like Grameenphone, Square Pharma, BRAC Bank, and Renata are experiencing stable buying pressure. Grameenphone recently announced its dividend record date, prompting retail investors to sell off shares. Typically, this leads to a price drop, but institutional investors are stepping in, which is a positive sign for the market."