Bargain hunting fails to lift Dhaka bourse as institutional silence prolongs slump

Infographic: TBS

The Dhaka Stock Exchange (DSE) extended its losing streak for a fifth consecutive session today (21 December), as weak institutional participation continued to overshadow late buying interest from bargain hunters.

The benchmark DSEX edged down by nearly five points to close at 4,826, marking a cumulative loss of 137 points over the past five trading days and underscoring the fragile state of investor confidence.

Although the market showed tentative signs of recovery in the final hour of trading, the broader index remained under pressure for most of the session. 

According to EBL Securities' daily market review, selective buying emerged toward the close as investors anticipated clearer signals on upcoming electoral developments. However, the modest late-session demand was insufficient to offset the prevailing bearish momentum that has persisted since last week.

Market participants said political uncertainty continues to weigh heavily on sentiment, keeping large investors on the sidelines. 

Chief executives of several leading brokerage houses and merchant banks noted that institutional investors remain largely inactive, preferring to wait for greater clarity on both the political and economic fronts before committing fresh funds. This absence of institutional support has left the market vulnerable to continued selling pressure.

Analysts observed that there is little fresh demand for shares, while selling – particularly from margin accounts – has remained persistent. As share prices fall, forced adjustments from leveraged positions have added to supply pressure, deepening the imbalance between buyers and sellers and accelerating the market's downward drift.

The blue-chip DS30 index also mirrored the cautious mood, slipping six points to settle at 1,853. 

Market breadth was relatively balanced, with 161 issues advancing, 157 declining, and 70 remaining unchanged. 

Despite this near-even distribution, overall activity remained subdued, as total turnover dropped by 3% from the previous session to Tk293 crore, reflecting investors' continued reluctance to take meaningful positions.

Sector-wise, food stocks dominated trading activity, accounting for the highest share of turnover, followed by textile and engineering issues. 

Rahima Food emerged as the top turnover leader, alongside Dominage Steel, Simtex Industries, Fine Foods and City General Insurance, indicating that speculative and stock-specific interests are still driving trades in the absence of broad-based confidence.

Performance across sectors was mixed. Jute, services and tannery stocks managed modest gains, offering some relief to selective investors. In contrast, cement, travel and mutual fund sectors faced the sharpest corrections, highlighting the uneven nature of market movements under current conditions.

Among individual stocks, Rahim Textile topped the gainers' list, followed by Zeal Bangla Sugar and RSRM Steel, as investors selectively chased short-term opportunities. 

On the losing side, Bay Leasing, CAPM BDBL Mutual Fund and BIFC suffered notable declines amid ongoing selling pressure.

The cautious tone was also evident at the Chittagong Stock Exchange, where both major indices ended in the red. The CSCX fell by 38 points to close at 8,364, while the CASPI dropped 63 points to 13,561. Turnover at the port city bourse stood at Tk12 crore, reflecting similarly muted participation.