DSEX slips 35 points after 3-day rally

The indices of the Dhaka Stock Exchange declined after a three-day rally, as cautious investors booked profits and shifted their investments to undervalued but promising stocks.

The DSEX fell 35 points yesterday to close at 5,380, while the blue-chip DS30 index shed 17 points to finish at 2,086. 

The Shariah index also dropped 7 points, closing at 1,165. Market turnover decreased by 20.45% to Tk564 crore, compared to Tk709 crore in the previous session. 

Out of 394 issues traded, 70 advanced, 282 declined, and 44 remained unchanged.

Market insiders noted that the interim government has announced a roadmap for the upcoming national election. However, investors remain concerned about the election period, as it may affect the capital market and the overall economy. As a result, some investors are adopting a cautious, wait-and-see approach before making new investments.

Experts added that the capital market regulator has initiated several positive reforms, many of which are already delivering results. A key driver for equities is the declining yield on government securities, which analysts expect to drop further. With stock market returns holding above 10%, falling bond yields are making equities an increasingly attractive investment option.

Investor confidence has risen on positive macroeconomic indicators. Foreign exchange reserves have stabilised and are climbing. The planned merger of weaker banks has reassured the market while political uncertainty ahead of the national election has eased, they added. 

In its daily market commentary, EBL Securities observed that the bourse opened the week on a negative note, enduring broad-based selloffs throughout the session as weakened investor sentiment dragged most scrips into the red zone.

The market saw choppy trading as sellers regained control amid a lack of fresh catalysts, while the upcoming earnings season kept investors cautious in taking equity positions, according to the commentary.