Equities continue their ascent for a fourth consecutively prosperous week.
The Dhaka Stock Exchange (DSE) has witnessed a four-week streak of stock gains, with large-cap stocks leading the charge. This positive trend is attributed to increased investor participation, positive market sentiment, and broad-based gains across several sectors.
The benchmark DSEX index rose by 1.27% or 61 points, closing at 4,894 - the highest level in 34 trading days. The blue-chip DS30 index also advanced by 16 points, settling at 1,836. The average daily turnover increased by 34% to Tk486 crore, compared to Tk362 crore in the previous week.
One of the key drivers of this growth has been the increased investor activity. There was a notable rise in buying interest, particularly in large-cap stocks trading at attractive valuations. On one day, the turnover even hit Tk506.18 crore, the highest in nearly two months.
The market showed a generally positive trend despite minor fluctuations, according to BRAC EPL Stock Brokerage. The banking sector posted a weekly gain of 6.30%, with BRAC Bank being the top-traded and gaining stock. The engineering sector had the highest gain among non-financial sectors with 1.45%, while the fuel and power sector followed with a gain of 1.30%.
The market movement was driven by positive changes in the market capitalization of bank, engineering, and non-bank financial institution (NBFI) scrips. NBFIs also showed strong performance with a gain of 4.30%. The telecommunications sector posted the highest loss among all sectors with 0.82%.
Blue-chip companies such as BRAC Bank, British American Tobacco Bangladesh Company Ltd. (BATBC), Walton High-Tech Industries, and Square Pharmaceuticals saw significant price increases. Their recovery after a prolonged bearish period helped drive a rising turnover and returns, restoring dominance of blue-chip stocks in the market.
Some price hikes in blue chips were motivated by investors aiming to avail tax rebate opportunities before the end of the fiscal year, providing an additional catalyst for buying large-cap stocks. The engineering sector had the highest gain among non-financial sectors with 1.45%.
The DSE market capitalization increased by Tk4,440 crore over the week, reaching Tk6.66 lakh crore. However, Berger Paints was the top loser, dropping 11.34% mainly due to rights share adjustment.
In conclusion, the combination of improved investor confidence, attractive valuations in large-cap sectors (banks, engineering, NBFIs), positive market breadth, and fiscal year-end tax incentives contributed to sustained gains in the DSE's large-cap stocks over the four-week period.
Investors' interest increasingly focused on large-cap stocks with attractive valuations, leading to a surge in buying activity in the four-week period on the Dhaka Stock Exchange. The rising turnover and returns in blue-chip companies such as BRAC Bank, BATBC, Walton High-Tech Industries, and Square Pharmaceuticals were driven by a combination of factors, including improved investor confidence, positive market breadth, and fiscal year-end tax incentives.
