DSEX crosses 5,000 mark following two-months of choppy movement

DSEX, the broad based index of the Dhaka Stock Exchange (DSE), crossed the psychological mark of 5,000 points on Sunday, following a choppy movement over the last two months.

Analysts thanked the most recent positive developments, including increased export earnings, a decline in November inflation, and very importantly the capping of individuals' investment in national savings certificates which are believed to be the most popular fixed income investment tools in terms of risk and return.

On Sunday, DSEX closed at 5,024 points registering nearly 1% gain over the session. Shariah Index DSES increased by 1.34% to close at 1,1150.81, while blue-chip index DS30 gained rose by 1.25% to close at 1,748.64.

DSEX came below 5,000 marks on 5 October, 2020 and had bottomed at around 4,800 points thrice since then.

Investors' increased participation helped the DSE turnover to cross Tk843 crore, which was below Tk823 crore last Thursday.

"Investors showed optimism on sectoral giants and participation remained vibrant riding on regulatory moves to restore discipline in the market," EBL Securities Research wrote in its daily market recap.

Meanwhile, a positive trend in November exports depicted a sign of economic recovery which is expected to generate satisfactory bottom-line of the listed companies in the coming months.

All the sectors except service and real estate, mutual funds and general insurance witnessed market capitalisation gain on Sunday with jute, IT, financial institutions, miscellaneous, engineering, telecom, pharmaceuticals, cement, tannery, paper & printing, life insurance, and banking stocks gaining more than 1% on an average.

Traveling at an outstanding height, general insurance stocks lost over 4% of their market capitalisation on an average, while listed-mutual funds fell by more than 2% following the sudden price hikes a few weeks ago.

Meanwhile, each of the sectors registered moderate to significant turnover hikes.

Major indices at the Chittagong Stock Exchange (CSE) have gained by more than 1%, while turnover reduced by 1% at the port city bourse.