Political jitters and NBFI fear drive DSE turnover to six-month low
Amid these concerns, market turnover dropped by 26.37% to Tk268 crore, down from Tk364 crore in the previous session, marking the lowest daily turnover in the past six months.
The Dhaka Stock Exchange (DSE) extended its losing streak for the third consecutive session yesterday (7 December) as cautious investors stayed on the sidelines amid persisting political uncertainty and fresh concerns over the decision to wind up nine non-bank financial institutions (NBFIs).
Amid these concerns, market turnover dropped by 26.37% to Tk268 crore, down from Tk364 crore in the previous session, marking the lowest daily turnover in the past six months. Previously, the last time turnover fell below this level was on 15 June this year, when transactions stood at Tk263.03 crore. Out of 387 traded issues, 110 advanced, 209 declined, and 68 remained unchanged.
The benchmark DSEX index declined by 14 points to close at 4,873, while the blue-chip DS30 index fell 6 points to settle at 1,886. The Shariah index DSES also shed 4 points, ending at 1,021.
Market insiders say that political uncertainty ahead of the national election schedule announcement has heavily influenced investor sentiment. Major brokerage houses are seeing higher net selling than net buying, reflecting weak confidence. Analysts also note that no short-term bullish sentiment is visible at this stage. Meanwhile, the Bangladesh Bank's recent decision to wind up nine NBFIs has further delivered a sharp blow to overall market sentiment.
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According to insiders, the announcement sparked panic across the market, prompting many investors to rush to sell shares. Such a stringent regulatory move has frustrated general investors, who have already been facing losses for an extended period.
Market insiders also note that expectations surrounding the upcoming national elections could eventually boost investor sentiment, particularly after the election schedule is announced. Political clarity generally encourages stronger market participation, which can help stabilise and positively influence the market.
They add that after several consecutive weeks of price declines, the market has become significantly oversold. As a result, many fundamentally strong stocks are now being traded at undervalued levels. Some cautious but opportunity-driven investors are taking fresh positions in anticipation of potential future gains.
Observers also point out that the recent downturn was not driven solely by political uncertainty. The enforcement of new margin loan regulations forced many investors to sell their shares, intensifying the decline and adding further pressure on overall market prices.
Among the top gainers, International Leasing rose by 10.61%, followed by Shyampur Sugar by 10% and Zeal Bangla Sugar by 9.99%. On the losing side, FAS Finance dropped by 10%, Khulna Printing by 9.68%, and BD Thai Aluminium by 9.30%.
Orion Infusion, Khan Brothers PP Woven Bag, and Dominage Steel Building were the most actively traded stocks.
Most large-cap sectors posted negative performance. Fuel & Power experienced the highest loss at 0.87%, followed by Engineering (-0.53%), Pharmaceutical (-0.18%), NBFI (-0.18%), Bank (-0.18%), and Telecommunication (-0.10%). The only sector with a positive return was Food & Allied, which gained by 0.71%. Block trades contributed by 4.9% of the overall market turnover.
The Chittagong Stock Exchange (CSE) also closed lower, with the CSCX index dropping by 37 points to 8,436, and the CASPI index losing by 63 points to close at 13,685, reflecting negative sentiment across both major bourses.
