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Dhaka Stock Market Rebound

Dhaka Stocks Rebound in Morning Trade Amid Investor Optimism

Dhaka's stock market showed signs of recovery in the morning trading session today, bouncing back from recent declines as investors displayed renewed confidence. The key benchmark index of the Dhaka Stock Exchange (DSE), the DSEX, climbed significantly during the initial hours of trading, reflecting a positive shift in market sentiment. This rebound comes after a period of volatility that had seen the index dip due to various economic pressures, including global uncertainties and local regulatory concerns. Market analysts attribute the uptick to a combination of factors, including bargain hunting by investors and positive cues from sectors like banking and pharmaceuticals.

At the opening bell, the DSEX surged by over 50 points within the first hour, reaching a level that erased much of the losses from the previous session. By mid-morning, the index had gained approximately 1.2 percent, standing at around 5,300 points. This performance was mirrored in other indices as well. The DS30, which tracks blue-chip companies, rose by about 1.5 percent, while the DSES, focusing on Shariah-compliant stocks, also advanced by a similar margin. Turnover during the morning session was robust, with trading volume exceeding Tk 300 crore, indicating active participation from both retail and institutional investors.

Several stocks led the charge in this rebound. In the banking sector, shares of major lenders like BRAC Bank and Dutch-Bangla Bank saw notable gains, up by 2-3 percent each. Analysts point out that banks have been under pressure lately due to concerns over non-performing loans and interest rate fluctuations, but today's buying interest suggests investors are betting on a sector recovery. The pharmaceutical industry also contributed significantly to the market's uplift, with companies such as Beximco Pharmaceuticals and Square Pharmaceuticals posting gains of over 4 percent. These firms have benefited from strong export performance and domestic demand for healthcare products, especially in the wake of ongoing global health challenges.

Energy and power stocks were another bright spot, with entities like Summit Power and United Power Generation experiencing upward movement. This sector's performance is tied to Bangladesh's efforts to expand its energy infrastructure, and recent government announcements on subsidies and investments have bolstered investor confidence. On the flip side, not all sectors shared in the gains; some textile and garment stocks lagged, reflecting ongoing challenges in the export-oriented industry amid global supply chain disruptions and rising raw material costs.

Market observers note that this morning's rebound could be a response to broader economic indicators. Bangladesh's economy has been navigating inflationary pressures and foreign exchange reserve concerns, but recent data from the central bank shows a stabilization in remittances and export earnings. Additionally, the Securities and Exchange Commission (SEC) has been proactive in implementing measures to enhance market transparency and curb manipulative trading practices, which may have reassured investors. One trader, speaking anonymously, mentioned that "after days of selling pressure, today felt like a breath of fresh air. People are buying dips, expecting the market to stabilize further."

However, experts caution that the rebound might be short-lived if external factors intervene. Global events, such as fluctuations in commodity prices or geopolitical tensions, could impact sentiment. Domestically, the upcoming budget announcements and monetary policy decisions will be crucial. The DSE has been on a rollercoaster this year, with the DSEX peaking earlier in the year before correcting due to profit-taking and regulatory tightening. Today's session, though positive, saw some volatility, with the index fluctuating between gains and minor pullbacks as traders assessed real-time data.

In terms of individual stock performances, gainers outnumbered losers by a wide margin. Out of the traded issues, around 200 advanced, while only about 50 declined, with the rest remaining unchanged. This broad-based rally suggests a market-wide optimism rather than sector-specific drivers. High-volume stocks included those from the food and allied sector, where companies like Olympic Industries rose on expectations of strong quarterly earnings.

The Chittagong Stock Exchange (CSE) also mirrored the DSE's performance, with its all-share index gaining over 1 percent in the morning. This synchronized movement across exchanges underscores the interconnected nature of Bangladesh's capital markets. Investors are particularly watching for any foreign fund inflows, which have been subdued lately but could provide additional momentum if global conditions improve.

Looking ahead, market participants are hopeful that this rebound sets the tone for the rest of the trading day and possibly the week. If the gains hold, it could signal the start of a recovery phase, encouraging more sidelined capital to enter the market. Conversely, any afternoon selling could dampen spirits. As one analyst put it, "The market is resilient, but it needs sustained positive news to build on this momentum."

This morning's activity highlights the dynamic nature of Dhaka's stock market, where sentiment can shift rapidly based on a mix of local and international factors. For now, the rebound offers a glimmer of hope to investors who have endured recent downturns, potentially paving the way for a more stable trading environment in the days to come. As trading continues, all eyes will be on closing figures to gauge the true strength of this recovery. (Word count: 812)

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