Dhaka Stocks Go Up Slightly as Investors Stay Cautious

The Dhaka Stock Exchange (DSE) in Bangladesh saw a slight increase in its key index for the third consecutive day on Sunday.

This increase indicates that some investors are actively buying shares, while many others are being cautious about their investments.

The main index of the DSE, known as DSEX, went up by 8.91 points, or 0.14%, ending the day at 6,231.94 points. This rise follows a smaller increase of 4.49 points on November 30. Over the past three trading sessions, the DSEX has added a total of 29.12 points.

Market experts explain that investors are being careful with their decisions due to the uncertain economic and political situation in the country, especially with the national election coming up on January 7.

Some investors, however, are taking advantage of the situation by investing in specific sectors where they see a potential for quick gains, which has helped keep the market afloat.

With all of this, there’s a noticeable reluctance among a large number of investors to actively participate in the market. This hesitance is reflected in the turnover at the DSE, which was slightly lower on Sunday compared to the previous trading session.

The turnover decreased to Tk 349.01 crore from Tk 388.69 crore.

Another factor affecting the market is the recent decision by the Bangladesh Bank to raise the policy rate (repo). This move is aimed at controlling inflation by making borrowing more expensive and increasing banks’ lending rates.

Market operators believe this could lead to higher deposit rates in banks, potentially attracting investors to move their money to more secure bank investments.

According to EBL Securities, the Dhaka bourse’s benchmark index continued its upward trend due to investors looking for bargains in specific sectors following recent market corrections.

The market was quite steady until mid-session, but later, optimistic investors started buying oversold stocks, which pushed the market indices into positive territory.

Engineering stocks were the most traded on Sunday, followed by food and miscellaneous stocks. Out of 322 issues traded, 93 advanced, 48 declined, and 181 remained unchanged.

The DSE Shariah index, which tracks Shariah-compliant stocks, also saw a slight increase, adding 2.12 points to close at 1,355.32 points. The DS30 index, comprising blue-chip companies, marginally increased by 0.15 points to finish at 2,108.47 points.

Emerald Oil Industries Ltd led the turnover chart, with shares worth Tk 18.20 crore being traded. Other top turnover companies included GQ Ball Pen Industries Ltd, Khulna Printing & Packaging Limited, and Yeakin Polymer Limited.

This activity on the Dhaka Stock Exchange shows a mix of cautious and opportunistic approaches among investors in the current economic and political climate of Bangladesh.