DSEX sheds 222 points over seven consecutive sessions

The Dhaka Stock Exchange (DSE) indices fell for the seventh consecutive session, as cautious investors continued booking profits and shifting their investments to promising, undervalued stocks.

Over the past seven sessions, the bourse's benchmark index, DSEX, has shed 222 points as part of a market correction. Today (13 August), it slipped by 1 point to settle at 5,314. However, blue-chip stocks fared better, with the DS30 index rising 6 points to close at 2,057, and the Shariah index gaining 3 points to finish at 1,156.

Turnover increased by 5.7% to Tk705 crore, compared to Tk667 crore in the previous session. Among the 398 issues traded, 121 advanced, 203 declined, and 74 remained unchanged.

Major blue-chip stocks contributing to the DS30's gains included British American Tobacco Bangladesh Company, Investment Corporation of Bangladesh, Beximco Pharmaceuticals, Olympic Industries, Orion Infusion, Titas Gas Transmission, Bangladesh Submarine Cables, Beacon Pharmaceuticals, and Khan Brothers PP Woven Bag Industries.

Market insiders expect the current trend to persist through this week, with a possible 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 anticipate will fall further. With stock market returns currently exceeding 10%, lower government bond yields are making equities more attractive to investors.

Investor confidence has also been strengthened 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 a combination of easing economic worries, supportive policy actions, and attractive valuations — creating conditions where equities are becoming increasingly hard to ignore.

In its daily market review, EBL Securities noted that the benchmark index struggled to maintain midday momentum and ended on a flat note as investor sentiment oscillated between profit-taking and cautious bargain-hunting. Despite sideways consolidation dominating the morning session, strong buying interest in a few large-cap scrips spurred a breakout attempt in the early afternoon. However, profit-taking pressure emerged, leaving the session broadly unchanged and reflecting investors' indecision ahead of fresh market triggers, the review added.

On the sectoral front, pharmaceuticals accounted for the highest turnover at 17.5%, followed by banks at 13.2% and textiles at 10.4%. Most sectors posted positive returns, with jute (5.6%), tannery (1.3%), and paper (0.8%) recording the highest gains.

The port city bourse, CSE, also had a flat session, with the Selective Categories' Index (CSCX) and the All Share Price Index (CASPI) down by 5.8 points and 15.0 points, respectively.