DSE edges up as turnover jumps 20.5pc

 
The benchmark index of the Dhaka Stock Exchange (DSE) ended almost flat on Sunday as late selling pressure erased most of the session's early gains, although market turnover rose sharply following the Bangladesh Bank's first policy rate cut in nearly two years.

The broad index, DSEX, gained just 0.2 points to close at 5,896, remaining below the psychologically important 5,900-point level despite briefly crossing the mark during early trading.

Market analysts said the central bank's rate cut provided initial optimism, but persistent investor concerns over domestic economic conditions and geopolitical uncertainties prevented the market from sustaining its momentum, according to BSS report. 

Trading activity, however, improved significantly, with turnover rising 20.5 percent to Taka 12.6 billion from Taka 10.4 billion in the previous session.

Among the major sectors, textile stocks dominated trading, accounting for 21.4 percent of total turnover, followed by general insurance and pharmaceuticals, each contributing 11.9 percent.

Sectoral performance remained mixed. Mutual funds posted the highest gain of 5.6 percent, followed by jute (1.6 percent) and services (1.5 per cent). On the losing side, cement and life insurance sectors each declined 0.8 per cent, while bank shares fell 0.5 percent.

Out of 397 issues traded on the DSE, 192 advanced, 149 declined and 54 remained unchanged, indicating a moderately positive market breadth.

Meanwhile, the Chittagong Stock Exchange (CSE) also witnessed a mixed session, with its Selective Categories' Index (CSCX) falling 16.4 points and the All Share Price Index (CASPI) declining 33.8 points at the close.