DSEX returns to positive after a three-week fall
After falling for three consecutive weeks, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), recovered last week riding on an increase in investors' participation as the cheque encashment issue was resolved.
In the previous three weeks, the stock market was on a downtrend because of panic selling over the floor price withdrawal and the regulator's restrictions on purchasing stocks before cheque encashment.
On Monday last week, the regulator resolved the cheque encashment issue, helping the market return to a positive trend.
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Between 30 October and 3 November, DSEX fell for the first two trading sessions, and the last three days witnessed an increase.
As a result, the DSEX index gained 32 points or 0.5% and settled at 6,411 points while the average turnover soared by 52.2% to Tk1,094 crore.
Earlier, in the previous week, the DSEX declined by 14 points, and average turnover decreased by 38.2% to Tk716.7 crore largely impacted by a technical glitch.
EBL Securities said in its weekly commentary investors, taking advantage of the recent corrections in the market, opted to take positions on major scrips which they perceived as an opportunity to harness quick gains.
However, investors are also cautious about the BSEC's upcoming meeting with the International Monetary Fund (IMF) on recent capital market issues, which could have an impact on market momentum next week, reads the report.
Investors were active primarily in the miscellaneous sector contributing by 15.3%, pharmaceutical and chemical by 15.2%, and IT by 11.9% in the total turnover.
All the sectors, except banks by-0.1%, exhibited positive returns, the IT sector with 15.7% showed the highest gain, followed by travel at 10.0% and jute at 9.9%.
