DSE extends losing streak for third session, sheds 23 points on investor caution

The Dhaka Stock Exchange (DSE) extended its losing streak for a third consecutive session today (10 September) as cautious investors remained on the sidelines amid uncertainty over the market outlook, the ongoing energy crisis and concerns ahead of the corporate earnings season.

The DSEX, the broad index of the DSE, fell 23 points to settle at 5,515. The blue-chip DS30 index declined 8 points to 2,095, while the Shariah-based DSES index dropped 6 points to 1,105.

Turnover, however, increased 5.61% to Tk544 crore from Tk520 crore in the previous session.

Of the 387 securities traded, 113 advanced, 230 declined and 54 remained unchanged, indicating broad-based selling pressure across the market.

According to EBL Securities' daily market commentary, the market opened on a positive note but failed to sustain the initial momentum as selling pressure resurfaced across the trading board. The pressure intensified during the final hour, pushing the benchmark index into negative territory by the close.

Market participants said uncertainty over economic conditions and corporate operations has made investors reluctant to take fresh positions. The ongoing gas and electricity shortages have heightened concerns that disruptions to industrial production could weigh on corporate earnings.

Many investors are waiting for clearer signals on the market's direction and the upcoming earnings season before increasing their exposure, they said.

Recent interventions by the stock exchange in large buy and sell orders have also unsettled some major individual investors, according to market participants. They said uncertainty surrounding such interventions has prompted some investors to adopt a wait-and-see approach.

Recent inspections and investigations at several brokerage houses have also affected market sentiment.

The DSE Brokers Association of Bangladesh (DBA) has urged the stock exchange to avoid what it described as unnecessary harassment of brokerage houses during inspections and investigations. The association also called for a balanced approach so that such regulatory exercises do not disrupt the normal operations of brokerage firms.

Sector-wise, textile stocks accounted for the largest share of turnover at 24.7%, followed by General Insurance at 19.1% and banks at 10%.

Most sectors ended the session lower. Services recorded the steepest decline, falling 1.6%, followed by Life Insurance at 1.5% and Financial Institutions at 1.3%. Mutual Funds was the only sector to post a significant gain, rising 3.5%.

The Chittagong Stock Exchange (CSE) also closed lower. Its Selective Categories' Index (CSCX) fell 14.8 points, while the All Share Price Index (CASPI) declined 1.9 points.