Dhaka stocks edge down on profit-taking

Dhaka Stock Exchange (DSE) indices edged slightly lower today (23 December) as investors remained cautious amid ongoing political uncertainty and opted to book profits on existing holdings rather than take on new risks.

The benchmark DSEX index decreased 14 points to close at 4,861. The blue-chip DS30 index fell 2 points to settle at 1,873, while the Shariah-based DSES index shed 4 points to end at 1,003. 

Despite the decline, market turnover rose 2.77% to Tk407 crore, compared to Tk396 crore in the previous session. Out of 389 traded issues, 84 advanced, 242 declined, and 63 remained unchanged.

Market analysts say fears of possible disruptions, year-end sell pressure, and uncertainty surrounding the election process prompted investors to adopt a wait-and-see approach, contributing to the overall market downturn. During the bearish phase, yields on treasury bills and bonds have started to rise again, further weighing on equity market sentiment amid the ongoing bearish trend.

According to analysts, political uncertainty remains the most crucial issue influencing the stock market. As this uncertainty gradually eases, the market is expected to move in a more positive direction. Due to the current uncertainty, institutional investors and large individual investors have largely stayed away from active participation, keeping trading volume below its potential level.

In its daily market review, EBL Securities noted that the capital bourse struggled to build on the previous session's recovery, as risk-averse investors opted to reduce exposure amid the absence of meaningful catalysts, while persistent political uncertainties continued to dampen overall market sentiment. 

The market opened on a positive note, extending the recovery momentum from the previous session. However, as the session progressed, broad-based selling pressure resurfaced amid subdued investor sentiment, eroding early gains and ultimately dragging the index into negative territory, according to the commentary.

Most of the large-cap sectors posted negative performance today. Food & Allied was the only sector to register a slight gain of 0.18%, followed by Fuel & Power with a marginal increase of 0.03%. 

Other major sectors that ended in the red included Engineering (down 0.08%), Telecommunication (down 0.08%), Pharmaceutical (down 0.10%), Non-Bank Financial Institutions (down 0.25%) and Banks (down 0.35%).