Dhaka stocks rose for a second consecutive week as investors hunted for beaten-down shares, pushing average turnover up more than 40 per cent, though concerns over higher fuel costs, inflation and corporate earnings kept the recovery in check.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), gained 42 points over the week to close at 5,578, while average daily turnover jumped 41.6 per cent to Tk790 crore.
The market began the week on a stronger footing as investors accumulated shares they considered undervalued.
“Sentiment was also supported by government assurances over resolving industrial gas-supply constraints and renewed regulatory engagement with market intermediaries,” EBL Securities wrote in its weekend market commentary.
The rebound lost some momentum as investors weighed the recent domestic fuel-price increase and its potential to add to inflationary pressure and squeeze corporate earnings.
Selective buying in fundamentally sound and actively traded shares helped the market recover some ground in the middle of the week, but selling in the final session underscored continued caution.
Textile stocks dominated trading, accounting for 20.5 per cent of turnover, followed by general insurance at 15.5% and pharmaceuticals at 13.1 per cent.
Most sectors ended the week higher. Mutual funds led the gains with a 6.1 per cent return, followed by paper at 4.2 per cent and general insurance at 3.8 per cent.
Food and banking were the weakest sectors, each declining 0.6 per cent.
The stronger turnover and second straight weekly gain signalled renewed buying interest, but the durability of the recovery remains tied to broader economic conditions and investor confidence, said analysts.
