Stocks inched up this week, snapping a two-week losing streak, as bargain hunters selectively bought beaten-down shares despite cautious sentiment amid lingering domestic concerns.Business News Alerts
Market operators said investors stepped up buying in promising stocks following the securities regulator chairman's announcement of several market-development initiatives during the week.
Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan on Monday said the market would be allowed to move on its own strength and that the regulator would not intervene in its normal course.
The securities regulator also approved draft direct-listing rules and published them for public feedback this week, opening a new avenue for large, well-governed private, state-owned and multinational companies to enter the stock market without going through the traditional initial public offering process.Bangladesh Economic Insights
The BSEC chief also said the commission would soon take steps to bring public-interest companies to the capital market, further boosting investor confidence.
The market had five trading sessions during the week, with the first two sessions witnessing sharp declines while the final three closed higher.
The week began with a sharp fall as investors remained concerned about the adverse impact of prolonged gas and electricity shortages on industrial production and corporate profitability. The negative momentum persisted through the second session.
The market, however, rebounded over the final three sessions amid optimism surrounding the regulator's proposed market-development initiatives.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), gained more than 6 points, or 0.11 per cent, from the previous week to close at 5,662 points, after losing 218 points over the preceding two weeks.
In its weekly market analysis, EBL Securities said the ailing market received some respite this week as bargain hunters stepped in to accumulate beaten-down shares following a brief improvement in sentiment sparked by favourable remarks from regulatory authorities regarding the market's long-term structural reforms.
Nevertheless, broader investor sentiment remained cautious amid persistent domestic challenges that continue to weigh on the market's near-term trajectory, the stockbroker said.
The market performance was primarily shaped by a tug-of-war between buying and selling interest amid optimism surrounding the BSEC chairman's recently proposed market-development initiatives and the persistent energy crisis, said Sheltech Brokerage.
Despite strong selling pressure early in the week, renewed buying interest emerged following the announcement of several market-development initiatives.
"Looking ahead, investors are likely to assess whether buying interest can strengthen and help stabilise the market," said the stockbroker.
The DS30 index, which tracks blue-chip shares, also gained 6 points to 2,140, while the Shariah-based DSES index rose 5 points to 1,138.
Price gains in several large-cap stocks, including Beximco Pharmaceuticals, Malek Spinning, Paramount Textile, Beacon Pharmaceuticals and Saiham Cotton, contributed more than 16 points to the weekly rise in the benchmark index.
However, declines in Sharp Industries, Islami Bank, Lovello Ice Cream and Prime Bank shares pared most of the gains, taking the market almost flat.
Trading activity also increased slightly, with total turnover rising to Tk 30.44 billion from Tk 22.87 billion in the previous week that saw four trading sessions, instead of regular five, due to a public holiday.
Accordingly, average daily turnover rose 6.5 per cent to Tk 6.09 billion from Tk 5.72 billion in the preceding week.
The textile sector accounted for the largest share of the week's total turnover at 33.6 per cent, followed by general insurance at 12 per cent and pharmaceuticals at 11.3 per cent.
Market breadth remained negative, with 187 issues declining against 170 advancing, while 30 remained unchanged on the prime bourse.
Saiham Textile emerged as the most-traded stock of the week, with shares worth Tk 1.59 billion changing hands. Sharp Industries, Malek Spinning, Saiham Cotton and IPDC Finance followed in terms of turnover.
The Chittagong Stock Exchange (CSE) also ended the week slightly higher. Its All Share Price Index (CASPI) rose six points to close at 15,172, while the Selective Categories Index (CSCX) gained six points to 9,264.
