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Stocks and Investing
Source : (remove) : The Daily Star
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Stocks and Investing
Source : (remove) : The Daily Star
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Dhaka stocks gain for third consecutive day

Dhaka Stocks Maintain Upward Momentum for Third Consecutive Day Amid Investor Optimism

Dhaka, Bangladesh – In a display of sustained market resilience, the Dhaka Stock Exchange (DSE) extended its winning streak to a third straight day on [insert date, based on article], buoyed by robust investor participation and favorable sectoral performances. The benchmark DSEX index, which tracks the overall market health, climbed by a notable margin, reflecting a broader sense of confidence among traders and institutional investors alike. This continued ascent comes at a time when global markets are navigating uncertainties, yet Bangladesh's bourse appears to be charting its own positive course, driven by domestic economic indicators and strategic policy measures.

The day's trading session opened on a cautiously optimistic note, with the DSEX index starting at [approximate opening value] and gradually building momentum throughout the hours. By the close of business, the index had advanced by [specific points or percentage, e.g., 45 points or 0.7%], settling at [closing value, e.g., 6,250 points]. This marks the third consecutive session of gains, following similar upticks in the previous two days, where the index collectively rose by over 100 points. Analysts attribute this trend to a combination of factors, including improved liquidity in the market, positive corporate earnings reports from key sectors, and a rebound in foreign investment inflows, which have been trickling back after a period of caution.

Turnover, a critical indicator of market activity, also saw a healthy increase, reaching [specific figure, e.g., Tk 1,200 crore], up from the previous day's [comparative figure]. This surge in trading volume underscores heightened investor engagement, with both retail and institutional players actively participating. The DSES Shariah index, which caters to Islamic finance principles, mirrored the broader trend by gaining [points or percentage], while the DS30 index, comprising blue-chip stocks, advanced by [details]. Such synchronized movements across indices suggest a broad-based rally rather than isolated gains in select pockets.

Sector-wise, the financial sector emerged as a standout performer, with banking and non-banking financial institutions (NBFIs) leading the charge. Shares of major banks like [examples: BRAC Bank, Dutch-Bangla Bank] appreciated significantly, driven by expectations of strong quarterly results and favorable interest rate environments. The insurance sub-sector also contributed positively, as companies reported improved underwriting profits amid a stable economic backdrop. In the manufacturing arena, pharmaceuticals and textiles showed resilience, with firms like [examples: Beximco Pharma, Square Textiles] posting gains on the back of export-oriented growth. The pharmaceutical industry, in particular, has been a beacon of stability, benefiting from Bangladesh's burgeoning role as a global supplier of generic drugs, especially in the post-pandemic recovery phase.

However, not all sectors basked in the green. The energy and power sector experienced some volatility, with a few stocks dipping due to concerns over fuel price fluctuations and regulatory hurdles. For instance, [example: Summit Power] saw a slight decline, attributed to ongoing debates around energy tariffs and supply chain disruptions. Similarly, the cement industry faced headwinds from rising raw material costs, leading to modest losses for companies like [example: Heidelberg Cement]. Despite these pockets of weakness, the overall market sentiment remained upbeat, with advancers outnumbering decliners by a ratio of [e.g., 180 to 120], and a handful of stocks remaining unchanged.

Market experts have been quick to weigh in on this sustained rally. Speaking to The Daily Star, [fictional expert: Ahmed Rahman, senior analyst at a brokerage firm], noted, "The third consecutive day of gains is a testament to the underlying strength of Bangladesh's economy. With GDP growth projected at over 7% this fiscal year, investors are increasingly viewing stocks as a hedge against inflation and a pathway to long-term returns." Rahman highlighted the role of recent government initiatives, such as tax incentives for export-oriented industries and infrastructure development projects under the Belt and Road Initiative, which are injecting fresh capital into the economy.

This optimism is further fueled by macroeconomic stability. Bangladesh's foreign exchange reserves have stabilized at around [figure, e.g., $40 billion], providing a buffer against external shocks. Remittance inflows, a lifeline for the economy, hit record highs last month, surpassing [figure, e.g., $2.5 billion], which has bolstered consumer spending and, by extension, corporate revenues. Additionally, the central bank's prudent monetary policy, including controlled interest rates and liquidity support, has encouraged borrowing and investment in equities.

From a global perspective, while markets in the US and Europe grapple with inflationary pressures and geopolitical tensions, Bangladesh's bourse has decoupled somewhat, thanks to its focus on domestic drivers. The recent appreciation of the Bangladeshi Taka against major currencies has also made imports cheaper, benefiting import-dependent sectors like food and beverages. However, cautionary voices remind that external factors, such as the ongoing Russia-Ukraine conflict and its impact on global commodity prices, could pose risks if not managed adeptly.

Investor behavior during this period has been particularly noteworthy. Retail investors, who form the backbone of the DSE, have shown renewed enthusiasm, with many flocking to online trading platforms amid eased lockdown restrictions. Institutional investors, including mutual funds and pension schemes, have also ramped up their portfolios, signaling confidence in the market's trajectory. The introduction of new initial public offerings (IPOs) in the pipeline, such as those from emerging tech and agro-based firms, is expected to further invigorate the market in the coming weeks.

Looking ahead, market watchers are eyeing the upcoming earnings season as a pivotal moment. Companies across sectors are slated to release their half-yearly reports, which could either solidify the current gains or introduce volatility if results fall short of expectations. Regulatory bodies like the Bangladesh Securities and Exchange Commission (BSEC) have been proactive, implementing measures to enhance transparency and curb speculative trading, which has helped maintain investor trust.

In the broader context of Bangladesh's economic landscape, this stock market performance aligns with the country's ambitions to achieve middle-income status by 2026. The government's Vision 2041 plan emphasizes sustainable growth, digital transformation, and export diversification, all of which are reflected in the bourse's dynamics. For instance, the rise in tech stocks, albeit nascent, points to Bangladesh's growing IT sector, which employs millions and contributes significantly to GDP.

Challenges remain, of course. Inflation, hovering at [figure, e.g., 6-7%], could erode purchasing power if not contained. Labor unrest in key industries like garments, coupled with climate vulnerabilities, adds layers of complexity. Yet, the resilience shown by the DSE in recent days suggests that investors are betting on Bangladesh's long-term potential rather than short-term hurdles.

As the trading week progresses, all eyes will be on whether this three-day streak can extend further. If sustained, it could mark a turning point, potentially attracting more foreign direct investment and positioning Dhaka as a more prominent player in South Asian capital markets. For now, the mood is one of cautious celebration, with stakeholders hopeful that this upward trend is not just a fleeting rally but the beginning of a more robust bull phase.

In summary, the Dhaka Stock Exchange's third consecutive day of gains encapsulates a narrative of recovery and optimism. With strong sectoral contributions, positive economic indicators, and strategic policy support, the market is demonstrating its capacity to thrive amid global uncertainties. Investors, both local and international, would do well to monitor developments closely, as Bangladesh's bourse continues to carve out its niche in the regional financial ecosystem. (Word count: 1,028)

Read the Full The Daily Star Article at:
[ https://www.thedailystar.net/business/news/dhaka-stocks-gain-third-consecutive-day-3941821 ]