Dhaka stocks extend losing streak for 3rd day

The Dhaka Stock Exchange (DSE) continued its downward trend today, with the benchmark DSEX index dropping by 70 points over three consecutive sessions. 

This extended period of negative market sentiment has eroded investor confidence and hindered efforts to revive market activity, market insiders say.

Experts suggest most of the investors remain cautious and hesitant to engage fully in the market due to ongoing uncertainties. 

The DSEX index decreased by 34 points, closing at 5,132. The DSE shariah index dropped by 11 points to 1,151, and the DS30 index slipped by 17 points to settle at 1,896.

Turnover on the DSE decreased by 10.6%, reaching Tk318 crore from Tk356 crore compared to the previous session.

Among the 403 stocks traded, 75 gained, 261 declined, and 67 remained unchanged.

Market insiders say institutional investors remain inactive, with retail investors following suit amid current challenges. Key barriers to market growth include high deposit rates, liquidity crunch, low institutional and foreign participation and economic challenges worsened by political instability, all overshadowing recovery efforts.

The indices opened the trading session with a positive trend for the first 15 minutes. However, they gradually declined for the rest of the session, ending on a downward note.

Key stocks contributing to the decline index included Grameenphone, Renata, British American Tobacco Bangladesh Company, Islami Bank Bangladesh, Investment Corporation Of Bangladesh, Walton Hi-Tech Industries, Robi Axiata, Bangladesh Submarine Cables, BRAC Bank, and Square Pharmaceuticals Ltd.  

In its daily market commentary, EBL Securities noted that the capital bourse of the country started the week on a dismal note, extending the downbeat vibe from the previous sessions as dominant selloffs remained prevalent across the market due to the wavering investor sentiment pervading the trading floor.

Despite the indices being somewhat upbeat at the opening thirty minutes of the session, the market succumbed to its prevailing downtrend that pushed the majority of scrips sliding into red territory for consecutive sessions, it said. 

Moreover, the proposed tightening of regulations on margin loans by the capital market task force also induced further caution among market participants to remain watchful and stay on the sidelines, according to the commentary.

In sectoral performance, the textile sector contributed the highest turnover (19.4%), followed by the pharmaceuticals (12.6%) and the banks (10.8%). 

Most sectors showed negative returns, with the ceramic (2.4%), the financial institution (1.5%), and the jute (1.4%) sectors experiencing the biggest losses. Meanwhile, the services (0.9%), the IT (0.4%), and the textile (0.4%) sectors posted slight gains.

Of the 397 traded issues, 74 advanced, 254 declined, and 69 remained unchanged. 

The port city bourse, Chittagong Stock Exchange (CSE), also ended in the red, with the Selective Categories' Index (CSCX) and the All Share Price Index (CASPI) falling by 40.6 and 65.5 points, respectively.