DSE closes lower despite finance adviser's meeting with stakeholders
The DSEX shed 8 points to close at 5,190, while the blue-chip index, DS30, dropped 10 points to settle at 1,922. During the session, 162 issues advanced, 164 declined, and 73 remained unchanged
The benchmark index, DSEX, of the Dhaka Stock Exchange (DSE) ended today's (7 January) session in the red despite a meeting between Finance Adviser Salehuddin Ahmed and stakeholders aimed at boosting investor confidence.
The DSEX shed 8 points to close at 5,190, while the blue-chip index, DS30, dropped 10 points to settle at 1,922. During the session, 162 issues advanced, 164 declined, and 73 remained unchanged.
The market initially opened higher on optimism surrounding the finance adviser's visit to the DSE and his discussions with stakeholders. However, the index faced a downturn mid-session as no concrete commitments emerged to reassure investors, according to market insiders.
In a press briefing, Salehuddin stated that several initiatives are underway to restore market confidence. "We are focusing on reforms and not creating new policies. Unlike before, we will not favour certain stocks or artificially raise share prices through policy decisions," he said.
Keep updated, follow The Business Standard's Google news channel
The finance adviser highlighted that liquidity support and other measures have been implemented. "We have engaged with brokerage houses, the two stock exchanges, and market stakeholders to address their concerns. We are confident that the market will improve," he added, reiterating that no policy would be made to artificially increase share prices.
Meanwhile, investors staged a human chain protest today in front of the DSE building in the capital's Nikunja, demanding the resignation of Khondoker Rashed Maqsood, chairman of the Bangladesh Securities and Exchange Commission (BSEC).
EBL Securities, in its daily market review, noted that the DSEX failed to sustain the brief recovery seen in the previous session, reverting to a downward trajectory. The review attributed the decline to subdued investor sentiment, despite the finance adviser's efforts to engage with stakeholders.
"Although the session began on an optimistic note, the market could not hold onto gains due to cautious selling by risk-averse investors, who remained wary of uncertain market momentum," the review added.
Trading activity showed a modest improvement, with the DSE's total turnover increasing by 18% to Tk430 crore.
On the sectoral front, bank issues exerted the highest turnover, followed by the pharma and the textile sectors on the DSE.
Sectors displayed mixed returns, out of which textile, travel and non-bank financial institutions exhibited the most gains on the premier bourse, while jute, ceramic and paper exerted some corrections.
Junk stocks dominated the gainers' list, with shares of Shurwid Industries, FAS Finance, Phoenix Finance, and Western Marine Shipyard each surging by 10%, despite being categorised as Z-category stocks.
Meanwhile, the port city bourse, the Chittagong Stock Exchange, ended in the green. The CSCX and CASPI indices rose marginally by 20 and 36 points, respectively.
