Dhaka stocks fall for second session as earnings anxiety weighs

Infographic: TBS

The capital market opened the week on a weak note today (27 September), with investors selling shares amid anxiety over upcoming corporate financial results and a lack of fresh positive triggers, sending the benchmark index down for a second consecutive session.

The DSEX, the benchmark index of the Dhaka Stock Exchange, fell 45 points, or 0.81%, to settle at 5,532, while the blue-chip DS30 index dropped 12 points to close at 2,099.

Market breadth was overwhelmingly negative, with 277 issues declining against 75 advancing and 36 remaining unchanged. Daily turnover fell 4% to Tk727 crore from the previous session.

Stockbrokers attributed the downturn mainly to anxiety over corporate earnings and continued profit-booking.

In its daily market review, EBL Securities said the benchmark opened in negative territory as cautious investors adopted a wait-and-see approach amid limited conviction about the market's upward trajectory. The absence of immediate bullish catalysts and uncertainty over upcoming earnings announcements from companies with June year-end kept buyers largely on the sidelines.

Sheltech Brokerage Limited similarly said selling pressure dominated the session, dragging the benchmark to an intraday low of 5,532 points, where it eventually closed.

Large-cap and blue-chip stocks bore the brunt of the selling, with LafargeHolcim Bangladesh, Pubali Bank, Islami Bank Bangladesh, United Commercial Bank and Beximco Pharmaceuticals emerging as the major drags on the index.

Textiles generated the highest turnover, accounting for 19.2% of total transactions, followed by general insurance at 17.1% and pharmaceuticals at 14.7%.

Declines were widespread across major sectors. Cement suffered the steepest fall, dropping 3.3%, while life insurance declined 2.2% and information technology fell 1.9%.

Jute and mutual funds bucked the broader market trend, each gaining 2.8%, while general insurance rose 0.6%.

Among individual stocks, Prime Bank 1st ICB AMCL Mutual Fund topped the gainers with a 9.85% rise, followed by CAPM IBBL Mutual Fund, up 9.65%, ICB AMCL First Agrani Bank Mutual Fund, up 7.22%, Samorita Hospital, up 7.01%, and Khulna Printing, up 6.71%.

Meghna Condensed Milk led the losers, falling 6.09%, followed by CNA Textile, down 6.06%, Sharp Industries, down 5.75%, Premier Cement, down 5.64%, and BIFC, down 5.55%.

The Chittagong Stock Exchange (CSE) mirrored the decline in Dhaka.

Its selective CSCX index fell 90 points to settle at 9,057, while the all-share price index, CASPI, dropped 128 points to close at 14,783.

However, turnover at the CSE moved against the broader trend, surging 136% to Tk39.52 crore.