DSE stocks eke out weekly gain amid renewed buying

Stocks edged out a gain last week as renewed buying interest in beaten-down shares, improved expectations for industrial gas supplies and regulatory engagement with leading brokers helped the Dhaka Stock Exchange (DSE) recover from a prolonged downturn.

The DSEX, the benchmark index of the DSE, gained 16 points over the week to close at 5,532, while the blue-chip DS30 rose nearly five points to 2,101.

Despite the modest gains in the indices, market breadth remained weak, with 213 issues declining against 147 advancing, while 26 remained unchanged.

Daily average turnover edged up 0.11% to Tk554 crore, indicating little change in overall trading activity.

Meanwhile, the market capitalisation fell by around Tk700 crore during the week.

EBL Securities said the market started the week on a weak note as persistent concerns over the nationwide energy crisis and renewed geopolitical tensions in the Gulf region kept investors cautious. The DSEX briefly fell below the 5,400-point threshold as investors focused on limiting portfolio losses amid heightened uncertainty.

However, investor sentiment improved in the latter half of the week following government assurances to address industrial gas supply constraints and regulatory engagement with leading brokers. The developments encouraged investors to accumulate beaten-down stocks, helping the benchmark index advance for three consecutive session.

“Broader investors’ perspective improved” following the policy-level developments, EBL Securities said in its weekly assessment, while cautioning that domestic challenges and geopolitical uncertainties continued to weigh on investor confidence and could limit the scope for a sustained recovery.

Sheltech Brokerage also attributed the market rebound to renewed buying interest and improving investor sentiment. The brokerage said expectations surrounding the regulator’s engagement with leading brokerage firms, reports of improving gas supply conditions and Moody’s revision of Bangladesh’s economic outlook from negative to stable contributed to the recovery.

The market had remained under strong selling pressure early in the week amid heightened tensions in the Middle East and concerns over energy supplies. However, buying interest strengthened from the middle of the week following the regulatory meeting and reports of better gas availability, extending the recovery for three consecutive sessions.

The banking sector played a notable role in supporting the benchmark, with BRAC Bank, Pubali Bank, IFIC Bank and Dutch-Bangla Bank among the major index contributors. LafargeHolcim Bangladesh also helped lift the index.

Investors were most active in textile stocks, which accounted for 25.7% of total turnover, followed by general insurance at 15.6% and banks at 11.1%. Sectoral performance was mixed. Cement led the gainers with a 1.7% rise, followed by general insurance at 1.5% and banking stocks at 1.1%.

On the other hand, life insurance declined 1.3%, while miscellaneous and mutual fund sectors each fell 1.2%.

Envoy Textile topped the weekly turnover chart, followed by Sharp Industries, Saiham Textile, Eastern Bank and Paramount Textile, reflecting strong trading interest in textile and banking counters.

Al-Haj Textile emerged as the biggest gainer, soaring 20.6% over the week. Bangladesh National Insurance gained 18.4%, Information Services Network 17.5%, Meghna PET 16.4% and Apex Spinning 10%.

BD Thai Food was the biggest loser, falling 15.9%, followed by Saif Powertec with a 10.3% decline, Fareast Life Insurance 10.1%, CAPM BDBL Mutual Fund 8.9% and Midas Finance 7.8%.