DSEX suffers 89-point fall as majority of stocks decline

The Dhaka Stock Exchange (DSE) witnessed a sharp correction yesterday as the benchmark index DSEX lost 89 points, or 1.58%, to close at 5,538. The blue-chip DS30 index also fell by 39 points, or 1.78%, finishing the day at 2,152.

Out of the 401 issues traded, 305 declined, only 68 advanced, and 28 remained unchanged, leaving nearly three-quarters of the listed stocks in the red. 

Market turnover stood at Tk1,177 crore, down 16% from the previous session, while market capitalisation dropped by Tk5,000 crore to Tk7.26 lakh crore.

A managing director of a brokerage firm described the fall as a typical correction following a recent rally, noting that profit-taking sell pressure was the primary driver. "Usually, big falls occur after sharp rallies," he said. 

"The encouraging part is that turnover did not drop drastically, which suggests that demand remains strong. Day traders contributed most of today's activity, while fresh funds were limited. Given the market's liquidity position, this fall is unlikely to sustain."

Large-cap sectors dragged the market lower across the board. Engineering posted the steepest decline at 2.13%, followed by banking at 1.68%, telecommunications at 1.67%, pharmaceuticals at 1.38%, food and allied at 1.25%, fuel and power at 0.79%, and non-bank financial institutions at 0.61%.

Turnover was led by Orion Infusion, Robi, Khan Brothers PP Woven Bag, City Bank, and eGeneration.

Despite the overall downtrend, weak and low-fundamental companies dominated the day's gainers chart, with Tallu Spinning advancing 10%, Information Service Network rising 9.96%, Intech gaining 9.70%, CAPM BDBL Mutual Fund climbing 9.17%, and Peoples Leasing adding 8.33%.

On the other hand, the top losers included BIFC, which fell 7.31%, Aramit Cement, down 6.61%, Safko Spinning, which shed 6.53%, Nahee Aluminium, dropping 6.48%, and Western Marine Shipyard, which declined 6%.

The bearish trend was mirrored in the port city bourse, as the Chittagong Stock Exchange (CSE) also ended the day in negative territory. The CSCX index dropped 127 points to close at 9,557, while the CASPI lost 202 points to settle at 15,570. Turnover at the CSE stood at Tk19.77 crore.