DSEX slips below 5,900 as gas shortages, Middle East tensions weigh on sentiment
Lingering concerns over energy shortages, geopolitical risks and proposed changes to margin lending rules outweighed support from recent monetary easing, keeping investors on the sidelines.
The Dhaka Stock Exchange (DSE) ended lower today (3 August), with the benchmark index slipping below the psychological 5,900-point mark as persistent gas supply shortages, escalating tensions in the Middle East and uncertainty over the draft margin loan rules dampened investor sentiment.
After moving in a narrow range for most of the session, the market came under renewed selling pressure in the second half of trading. Market analysts said that while Bangladesh Bank's accommodative monetary policy and the government's efforts to ease the energy crisis have offered some support, lingering uncertainties continue to keep investors cautious.
The benchmark DSEX index shed 10.62 points, or 0.18%, to close at 5,886. The blue-chip DS30 index fell 9.06 points to 2,204, while the DSES Shariah Index lost 6.18 points to finish at 1,186.
Turnover on the premier bourse also declined, dropping 3.74% from the previous session to Tk1,211 crore.
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Among the 393 issues traded, 165 advanced, 169 declined and 59 remained unchanged. Although gainers and losers were nearly evenly matched, stronger selling pressure toward the close dragged the market into negative territory.
Market participants said uncertainty over the proposed margin loan rules has added to investors' concerns. With the deadline for public feedback approaching, investors remain uncertain whether the regulator will revise several contentious provisions before finalising the rules. As a result, many investors, particularly those relying on margin financing, are refraining from taking fresh positions.
In its daily market commentary, EBL Securities said the capital bourse slipped back into negative territory after witnessing day-long volatility, as selling pressure intensified near the psychological 5,900-point level. Despite supportive monetary easing and government initiatives to alleviate the energy crisis, persistent gas shortages and lingering Middle East tensions kept investors cautious, resulting in range-bound trading.
According to the brokerage, the benchmark index opened higher before selling pressure intensified across the board, pushing the market into negative territory by mid-session. A modest recovery attempt later in the day proved short-lived as profit-taking re-emerged, reflecting investors' continued caution amid an uncertain near-term market outlook.
On the sectoral front, textiles accounted for the largest share of turnover at 26.2%, followed by pharmaceuticals and chemicals at 11.8% and engineering at 10.6%.
Sector performance was mixed with mutual funds posting the strongest gain, rising 2.1%, followed by jute at 1.4% and information technology at 0.9%. On the downside, food and allied stocks fell 0.8%, general insurance declined 0.6%, and the miscellaneous sector lost 0.5%.
Fareast Finance topped the gainers' list with a 10% rise. Peoples Leasing and Financial Services and International Leasing and Financial Services followed, each advancing 9.52%.
Among the decliners, Meghna Pet Industries fell 5.15%, while SBAC Bank and Bangladesh Export Import Company (Beximco) lost 4.0% and 3.88%, respectively.
The most actively traded stocks of the day were Sharp Industries, Far East Knitting, and Monno Fabrics.
The Chittagong Stock Exchange (CSE) also closed lower, with the CSCX index shedding 14.2 points and the CASPI falling 30.2 points.
