DSEX falls for third straight session amid profit-taking

The premier index of the Dhaka Stock Exchange, DSEX, extended its losing streak for a third consecutive session, as cautious investors booked profits and shifted investments to specific items — mainly low-paid-up, undervalued, and promising stocks. 

Over the past three sessions, the DSEX has lost a total of 44 points. On Thursday, it slipped by 4 points to settle at 5,375. The blue-chip DS30 index gained 3 points to close at 2,089, while the Shariah index also rose 3 points to finish at 1,180.

Turnover fell sharply by 19.6% to Tk767 crore, compared to Tk954 crore in the previous session. Out of 397 issues traded, 117 advanced, 208 declined, and 72 remained unchanged.

Market insiders expect the current trend to persist through this week, with a potential rebound next week. Cautious investors are actively restructuring their portfolios and adjusting investment plans amid profit-taking and the ongoing correction phase.

A key factor supporting equities is the declining yield on government securities, which analysts expect to fall further. With stock market returns currently exceeding 10%, lower government bond yields are making equities increasingly attractive.

Investor confidence has also been bolstered by several positive macroeconomic developments. Bangladesh's foreign exchange reserves have stabilised and begun to rise, easing earlier concerns. 

The government's plan to merge weaker banks has reassured the market, while political uncertainty ahead of the upcoming national election has diminished, removing a significant drag on sentiment.

Additionally, many listed companies — particularly those with a June-ending fiscal year — remain undervalued, attracting renewed buying interest. 

Overall, insiders say the market's resilience is being driven by easing economic worries, supportive policy measures, and attractive valuations, creating a climate where equities are becoming harder to ignore.

Most large-cap sectors ended in negative territory. The telecommunication sector posted the highest loss of 0.81%, followed by NBFI (-0.76%), banks (-0.72%), fuel and power (-0.44%), and engineering (-0.27%). In contrast, food & allied (+0.02%) and pharmaceuticals (+0.20%) recorded modest gains.

Block trades contributed 1.7% of the total market turnover. Bangladesh Shipping Corporation was the most traded stock, gaining 0.6% with a turnover of Tk30.8 crore.