DSE turnover drops 20% as investor participation falls

Turnover — a key indicator of market activity — at the Dhaka Stock Exchange (DSE) dropped 20% to Tk611 crore today, reflecting weaker investor engagement compared to the previous session.

Amid the weakened participation, the DSE extended its losing streak to a fifth consecutive session due to the selling pressure by the investors.

On the day, the benchmark DSEX index slipped 6.98 points, or 0.13%, to close at 5,344, bringing the total loss over the past five sessions to 192 points. The market capitalisation declined by Tk5,500 crore during the day.

Blue-chip index DS30 edged up slightly by 0.38 points to settle at 2,067, while the Shariah-based DSES fell marginally. Out of the 405 issues traded, 121 advanced, 201 declined, and 83 remained unchanged.

Major blue-chip stocks dragging the market down included Square Pharmaceuticals, Pubali Bank, BAT Bangladesh, LafargeHolcim Bangladesh, and Exim Bank.

On the other hand, gains in BRAC Bank, Islami Bank, Titas Gas, Sea Pearl Beach Resort, and Beximco Pharmaceuticals helped limit the index's losses. Market insiders said bargain hunters targeted these stocks as their prices had become attractive after four straight days of decline.

Market insiders said the persistent downtrend, coupled with profit-taking pressure and cautious sentiment ahead of upcoming corporate earnings disclosures, contributed to the day's performance.

EBL Securities said in its daily market review, the benchmark index of the capital bourse fell short of breaking out from its correction phase and ended on a flat note today as investor sentiment oscillated between continued profit-taking and selective buying interest.

The market began on a brief bullish impulse, driven by bargain-hunting in selective blue-chip scrips. However, early optimism quickly faded as profit-taking pressures emerged, reflecting investors' conservative stance ahead of the earnings and dividend declaration season for June-closing companies, it added.

Although bargain hunting spurred modest rebound attempts later in the session, selling pressure intensified to neutralise the momentum and concluded the session broadly unchanged, EBL Securities noted.

On the sectoral front, pharmaceutical stocks accounted for the highest turnover at 15.1%, followed by banks at 14.2% and textiles at 13.4%.

Bangladesh Shipping Corporation led the trading activity with shares worth Tk20.87 crore changing hands, followed by Orion Infusion at Tk17.28 crore, Malek Spinning at Tk16.71 crore, and Sea Pearl Beach Resort at Tk16 crore.

Sectors displayed mixed returns, out of which non-bank financial institutions, travel and fuel and power showed the most gains on the bourse, while services, life insurance and jute exerted the most corrections. 

Mithun Knitting topped the gainers' list, hitting the day's 10% upper circuit breaker, followed by Tallu Spinning (8.92%), Sea Pearl Beach Resort (8.04%), GQ Ball Pen (7.29%), and First Finance (6.89%).

Investor interest in Mithun Knitting surged after Chinese firm Destination Express International (DEX-I) Limited once again applied to the Bangladesh Securities and Exchange Commission (BSEC) to acquire the sponsor shares of the company. The heightened demand kept the stock at the upper limit throughout the trading session.

On the other hand, Regent Textile suffered the steepest decline, plunging 8.33%, trailed by Mercantile Insurance (7.42%), Malek Spinning (3.81%), SS Steel (3.50%), and Renwick Jajneswar (3.47%).

Meanwhile, the port city bourse, the Chittagong Stock Exchange (CSE), also witnessed a flat session, with the Selective Categories Index (CSCX) losing 3.6 points and the All Share Price Index (CASPI) shedding 10.8 points.