DSEX sinks below 5,500 as losing streak extends to third day

The Dhaka Stock Exchange (DSE) suffered another sharp decline today (10 September), dragging its benchmark index below the 5,500 mark for the first time in 10 days. 

The DSEX dropped 65 points, or 1.17%, to close at 5,473, marking its third straight session of losses. Over the past three trading days, the index has shed 163 points, reflecting intensified selling pressure across the bourse.

The blue-chip DS30 also plunged, losing 22 points or 1.06% to settle at 2,129. Market breadth was overwhelmingly negative, with 313 issues declining against only 43 advancing, while 41 remained unchanged.

Investor activity slowed, with turnover falling 19% from the previous day to Tk949 crore, dipping below the Tk1,000 crore mark for the first time in nine sessions. 

Market capitalisation eroded by Tk10,000 crore in the single day of trading, underscoring the depth of the correction.

Market insiders attributed the downturn largely to profit-taking after recent rallies, particularly in banking stocks, which in turn weighed on the broader market. 

"The upward momentum had already started fading over the last few days, which was visible in the index performance," said the managing director of a leading brokerage house. 

"As a result, investors became cautious, and some opted to lock in profits. This situation is not unusual in the market cycle, and turnover contraction reflects that traders are temporarily holding back."

Robi led the turnover chart, posting transactions worth Tk42.41 crore, narrowly ahead of Orion Infusion at Tk42.39 crore. Khan Brothers PP Woven Bag followed with Tk31.11 crore in trade value.

All large-cap sectors finished in the red, dragging down the broader index. Non-bank financial institutions (NBFIs) led the market downturn with a sharp 3.61% loss, followed by fuel and power, which dropped 1.94%. The engineering sector slipped 1.57%, telecommunications fell 1.38%, food and allied declined 0.71%, pharmaceuticals edged down 0.51%, while banks shed 0.45%.

Despite the bearish market, several fundamentally weak companies topped the gainers' list. Tamijuddin Textile jumped 9.98%, Jute Spinners rose 8.72%, Prime Finance gained 7.14%, GQ Ball Pen advanced 5.22%, and Fine Foods climbed 5.19%.

On the flip side, the day's worst performers were led by Trust Islami Life Insurance, which plunged 9.96%, followed by Rupali Life Insurance falling 9.35%, Intech sliding 8.61%, eGeneration dropping 8.07%, and Progressive Life Insurance losing 7.83%.

The downbeat trend was echoed on the Chittagong Stock Exchange (CSE), where indices also closed lower. The CSCX index fell 86 points to 9,471, while the CASPI shed 143 points to finish at 15,427.