DSE loses Tk7,300cr in six consecutive sessions as turnover hits 3-month low

Investor participation on the country's premier bourse fell to a three-month low today (19 August) as the benchmark index extended its losing streak to six consecutive sessions.

Turnover on the Dhaka Stock Exchange (DSE) dropped 27% to Tk732 crore, the lowest since May, as industrial energy shortages and a lack of market-moving catalysts dampened investor appetite.

The benchmark DSEX index slipped 3 points to close at 5,769. While the marginal decline suggests that the pace of the market's fall may be slowing, the index has lost 125 points over the past six sessions.

During the period, the DSE's market capitalisation has declined by approximately Tk7,300 crore.

The blue-chip DS30 index also followed the downward trend, inching down to settle at 2,162. Market breadth remained firmly in favour of the bears, as 198 issues declined compared to 140 that managed to advance, while 61 scrips remained unchanged on the DSE floor.

According to a daily market review by Sheltech Brokerage Limited, the session was characterised by a fierce "tug-of-war" between bargain hunters and profit-takers. The market opened under strong selling pressure, which initially dragged the benchmark index down to an intraday low of 5,737.40 points.

Sentiment was further clouded by a regulatory clarification that denied recent media reports regarding potential widespread action against market manipulation. This clarification, combined with ongoing anxieties over gas supply disruptions affecting listed manufacturing units, initially fueled a sell-off. Although a wave of bargain hunting emerged mid-session, briefly lifting the DSEX to a high of 5,812.15, the recovery lacked sufficient buying conviction to hold. Selling pressure resurfaced in the final hour, erasing most of the intraday gains.

On the sectoral front, the textile sector remained the primary driver of liquidity, accounting for 23.5% of the total turnover, followed by general insurance at 12.8% and the engineering sector at 10.3%.

Sectoral returns were mixed. The ceramic sector led the gainers with a 1.2% rise, followed by miscellaneous and services. On the flip side, the cement sector faced the steepest correction of 1.4%, while mutual funds and textiles also witnessed price dips of 0.8% and 0.6%, respectively.

Individual stock performance featured Regent Textile as the top gainer with a 7.81% price hike, followed by Reliance One Mutual Fund and Runner Automobiles. Conversely, Sharp Industries emerged as the top loser, shedding 8.82% of its value, while GBB Power and Sena Insurance also faced notable corrections.

The bearish sentiment was mirrored at the Chittagong Stock Exchange (CSE), where the broad CASPI index fell by 19 points to finish at 15,494. The Selective Categories' Index (CSCX) also ended 7 points lower at 9,445. Trading activity at the port city bourse saw a catastrophic decline, with turnover plunging by 49% to reach only Tk37 crore.