DSEX slips to four-month low

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) fell to a four-month low yesterday, as cautious investors held back from fresh investments due to ongoing economic uncertainties.

The DSEX fell by 26 points to close at 5,105, extending its losing streak to a third consecutive session. Over the past three days, the index has shed a total of 100 points, reflecting growing investor anxiety over the potential impact of the gas price hike. 

The blue-chip index DS30 also dropped by 15 points to settle at 1,878.

Of the 396 issues traded, 120 advanced, 212 declined, and 64 remained unchanged. Market turnover fell by 11% from the previous session to Tk396 crore.

Meanwhile, the Chittagong Stock Exchange (CSE) also closed in negative territory. Its general index (CSCX) dropped 26 points to 8,727, to finish at 8,727, while the all-share price index (CASPI) dropped 48 points to 14,322.

According to market insiders, although indices stayed afloat during the early hours of yesterday's session, a continued cautious selling approach further weighed on the market, dragging most scrips back into the negative territory again.

EBL Securities, in its daily market review, said Dhaka stocks slumped for three straight sessions, reflecting wavering confidence across the trading floor, as cautious investors clung to an uncertain market momentum stemming from the prevailing economic concerns.

The market mostly remained sell dominant as cautious investors adopted a watchful stance to closely monitor the market's trend. Persistent uncertainties surrounding the potential impact of US tariffs, ongoing negotiations with the IMF over remaining loan tranches, feared tax hikes in current pre-budget discussions and the recent fuel price hike continue to weigh on the market's momentum, dragging most scrips into the negative territory for consecutive sessions, the review added.

On the sectoral front, the pharmaceuticals and chemicals sector led with 15.9% of total turnover, followed by food and banking sectors.
Sectors mostly displayed dismal returns, out of which mutual fund, services and cement exerted the most corrections on the Dhaka bourse, while general insurance, textile and fuel exhibited marginal returns.

Desh General Insurance topped the gainer list with an 10% increase, bringing its share price to Tk29.7, followed by Khan Brothers PP Woven Bag with an 9.99% rise to Tk133.2, Shahjibazar Power with a 9.94% gain to Tk37.6, Fareast Finance with an 8.57% increase to Tk3.8.

On the losing side, AIBL First Mutual Fund was the worst performer of the day, falling 8.33% to Tk6.60. It was followed by AB Bank First Mutual Fund with a 7.54% drop to Tk4.90, and BD Finance with a 6.89% drop to Tk10.80.