Written by The Banking Post
Dhaka stocks bounced back on Sunday after five straight sessions of losses, as cautious investors returned to the trading floor amid easing rumours and renewed interest in undervalued shares.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) gained 25 points to close at 5,228. The blue-chip DS30 advanced 11 points to 2,010, while the Shariah index edged up by 2 points to finish at 1,118.
Turnover rose by 19% to Tk737 crore, compared to Tk619 crore in the previous session, reflecting a moderate recovery in trading activity. Out of 400 issues traded, 230 advanced, 120 declined, and 50 remained unchanged.
Market insiders said general investors are focusing on short-term profit-taking whenever they see small gains, as the political and economic climate remains uncertain. Although the interim government has outlined its election roadmap, most investors have adopted a wait-and-see stance before making fresh commitments.
Last week, the market came under pressure amid political rumours and economic concerns, weakening investor sentiment. However, Sunday’s rebound suggests renewed buying interest, particularly in fundamentally strong and undervalued stocks.
Analysts believe the market could gradually regain stability as government bond and Treasury bill yields continue to decline, making equities comparatively more attractive. “If yields fall further, we may see stronger participation from large investors and institutions,” said one market analyst.
The banking sector’s growing deposit mobilisation is also expected to inject additional liquidity into the market. Meanwhile, the capital market regulator’s recent reforms are beginning to take effect, helping rebuild investor confidence.
According to analysts, the average market return has now crossed 10%, prompting investors to move away from low-yield bonds to higher-return equities.
EBL Securities noted that the capital market managed to break out of its bearish trend as bargain hunters targeted selective stocks trading at attractive prices. The firm added that while broad selling pressure eased, many investors still preferred to stay on the sidelines to observe market direction during the ongoing earnings season.
On the sectoral front, general insurance led the day’s turnover with 12.2% of total trade value, followed by textiles (11.5%) and banks (11.4%).
Sector performance was mixed — general insurance gained 3.3%, travel rose 1.6%, and IT advanced 1.3%, while paper, mutual fund, and services sectors slipped by 1.4%, 0.9%, and 0.5% respectively.
Despite the cautious mood, analysts say the rebound could mark the start of a gradual recovery phase — provided political calm continues and liquidity support remains steady in the coming weeks.
