Dhaka stocks extend losing streak

The benchmark index, DSEX, of the Dhaka Stock Exchange (DSE) extended its losing momentum for the second consecutive session, as cautious investors sold off shares after a short rally.

The indices opened the trading session on a positive note for the first 30 minutes. However, they gradually declined until the session ended.

The DSEX declined by 17 points to close at 5,205 while the shariah index fell by 1 point to 1,162 and the blue-chip DS30 index dropped by 6 points to 1,889.

According to market insiders, over the past two months, the DSEX has fluctuated between 5,100 and 5,200 points. Institutional investors remain inactive, with retail investors following suit amid current challenges. 

Key barriers to market growth include high deposit rates, a liquidity crunch, low institutional and foreign participation, and economic challenges worsened by political instability.

Cautious investors are now selectively purchasing specific stocks and undervalued shares with strong potential. Some investors have also redirected their funds into blue-chip stocks to safeguard their investments.

Among the 396 stocks traded today, 97 gained, 221 declined, and 78 remained unchanged.

Turnover increased by 12.7%, reaching Tk505 crore from Tk448 crore in the previous session.

Key stocks contributing to the decline of the premier index included Robi Axiata, Grameenphone, British American Tobacco Bangladesh Company, National Bank, Power Grid Company of Bangladesh, Walton Hi-Tech Industries, Square Pharmaceuticals, Investment Corporation of Bangladesh, Titas Gas Transmission, and Marico Bangladesh Limited.

Mozaffar Hossain Spinning Mills topped the list of gainers, followed by Bashundhara Paper Mills, EBL First Mutual Fund, SEML Lecture Equity Management Fund, Fu-Wang Ceramic Industries, and Global Insurance Limited.

National Bank led the list of top losers, followed by Robi Axiata, Magura Multiplex, DBH First Mutual Fund, MBL 1st Mutual Fund, and Prime Bank 1st ICB AMCL Mutual Fund.

In its daily market commentary, EBL Securities noted that the capital bourse extended its downbeat trend from the previous session due to investors' cautious selling approach. However, a slight increase in investor participation was observed across the trading board.

Market indices saw a downward trend for most of the session as sellers remained dominant, pushing the majority of scrips into red territory, according to the commentary.

The food sector recorded the highest turnover at 15.0%, followed by the pharmaceuticals at 12.1% and the textiles at 11.6%.

On the sectoral front, the pharmaceuticals recorded the highest turnover at 14.6%, followed by the textiles at 13.1% and the engineering at 11.9%.

Most sectors showed negative returns. The biggest declines were seen in the general insurance (1.5%), the financial institutions (1.0%), and the life insurance (1.0%). However, a few sectors posted marginal gains, including the paper (1.9%), the ceramic (0.3%), and the mutual funds (0.1%).

The Chittagong Stock Exchange (CSE) also had a negative session. The Selective Categories Index (CSCX) fell by 10.2 points, while the All Share Price Index (CASPI) declined by 27.2 points. The turnover stood at Tk4 crore.

Among the 189 stocks traded, 69 gained, 99 declined, and 21 remained unchanged.

Meanwhile, the DSMEX-SME index declined by 9 points to 998, with a turnover of Tk4.65 crore.