Post-election optimism fades as markets slide for third day
After an initial post-election rally, Dhaka bourses retreated for the third day, driven by profit-taking and weak buying support
Stocks continued their losing streak for a third consecutive session today (18 February), as cautious investors trimmed positions despite the formation of a new government following the 13th parliamentary election.
The benchmark DSEX of the Dhaka Stock Exchange PLC fell 51 points, or 0.92%, to close at 5,519, marking a three-day decline of 81 points.
Market capitalisation dropped by around Tk7,500 crore, reflecting broad-based selling pressure. The DS30 index of blue-chip stocks also fell 16 points, or 0.76%, to settle at 2,110.
Market breadth remained heavily negative, with 286 issues declining, 82 advancing, and 25 unchanged. Turnover tumbled 23% to Tk935 crore, indicating reduced investor participation amid mounting uncertainty.
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The market slide comes after the Bangladesh Nationalist Party (BNP) secured victory in the 13th parliamentary election and took oath yesterday (17 February).
While the DSEX had surged 200 points on 15 February, the first trading day after the election, initial optimism quickly faded.
Market insiders said investors are cautious, awaiting clarity on leadership at the Bangladesh Securities and Exchange Commission (BSEC). Uncertainty persists over whether the current chairman and commissioners will remain in their roles or be replaced under the new administration.
EBL Securities said the election-driven rally has retreated for a third straight session, weighed down by persistent profit-booking.
"Market participants are watchful, assessing potential policy directions and the regulatory environment under the newly elected government," the firm added.
Day-long volatility dominated trading as profit-taking continued amid weak buying support. Major blue-chip stocks faced sustained selling pressure, pushing indices further into the red.
Among turnover leaders were Square Pharma, Asiatic Laboratories, Dhaka Bank, City Bank, and Pragati Life Insurance, showing that major stocks continued to dominate trading activity despite the overall decline.
On the gainers' list, Nahee Aluminum rose 9.79%, followed by S Alam Cold Rolled Steels, National Bank, Bangladesh Building System, and Pragati Life Insurance.
However, losers far outnumbered gainers, with Union Capital down 8.33%, Premier Bank 8.19%, Jute Spinners 7.62%, IFIC Bank 7.46%, and Generation Next 7.14%.
Meanwhile, the Chittagong Stock Exchange PLC also closed lower. The CSCX index fell 62 points to 9,463, while the CASPI dropped 84 points to 15,429. Turnover at the port city bourse stood at Tk22 crore.
