Blue-Chip Rally Extends Recovery at DSE; DSEX Gains 42 Points

The Dhaka Stock Exchange (DSE) experienced a moderate gain on Monday, marking its second consecutive session of recovery. The market bounced back as investors capitalized on what were perceived as attractive price levels following a significant correction period between October 30 and November 13, during which the DSE lost 420 points.

The benchmark index, DSEX, showed volatility initially but maintained a steady upward trend through the mid-session, eventually closing with a moderate gain of 0.90 per cent, or 42.80 points, settling at 4,774. The appreciation of the majority of blue-chip stocks was the primary driver for the index's rise. Out of the 30 blue-chip stocks, 23 advanced.

The blue-chip index, DS30, advanced by 0.50 per cent, or 9.37 points, closing at 1,869. Notable gainers included British American Tobacco Bangladesh Company, Bangladesh Shipping Corporation, Beximco Pharmaceuticals, and Grameenphone. The premier bourse posted a turnover of Tk 3.48 billion, reflecting a 16.73 per cent increase from the previous session. 322 issues advanced, 35 declined, and 16 remained unchanged out of 373 issues traded. Beximco Pharma was the top index puller, adding 3 points to the DSEX. Conversely, Square Pharmaceuticals was the top index dragger, declining 4.65 per cent.

Major sectors supporting the market included banking, life insurance, life and general insurance, and services & real estate. Market sentiment was reportedly influenced by rumors of a favorable outcome in the legal proceedings regarding the court's ruling on the recently revised margin rules. The effectiveness of these rules and the forced selling by lenders had previously created market concern.

Despite the gains, analysts like Selim Afzal Shawon of BRAC EPL Stock Brokerage cautioned that it is "difficult to say the market is free from its abnormal behaviour," referencing the deep corrections that created current trading opportunities.

The DSE disseminated information regarding the closure of four non-performing companies (Ratanpur Steel Re-Rolling Mills, Nurani Dyeing, Aramit Cement, and Pacific Denims), yet their share prices saw unusual appreciation, ranging from 6.25 per cent to 9.46 per cent. Square Pharmaceuticals led the turnover chart with Tk 149 million.