Selling pressure drags DSEX down 125 points in four sessions

The Dhaka Stock Exchange (DSE) extended its losing streak to four consecutive trading sessions today (6 October), with persistent selling pressure reflecting growing investor caution over corporate earnings and dividend declarations.

The DSEX, the benchmark index of the DSE, fell 20.37 points, or 0.37%, to settle at 5,424.62. The index has lost around 125 points over the past four sessions.

Despite the fall in the index, turnover increased slightly. The DSE recorded Tk564.18 crore in turnover, up nearly 5% from Tk537.12 crore in the previous session.

The broader market remained negative. Of the 390 companies and mutual funds traded on the DSE, prices of 270 declined, while 79 advanced and 41 remained unchanged.

The DSE30 index, which tracks 30 leading blue-chip companies, fell 4.65 points to 2,077, while the Shariah-based DSES index declined 4.94 points to 1,074.

One of the key factors behind the recent decline is growing investor caution over the financial results and dividend declarations of listed companies with June-ending fiscal years.

Several companies are now publishing their annual financial results and announcing dividends. Concerns over weaker earnings or lower-than-expected dividends have prompted some investors to sell shares ahead of the announcements.

Broader economic uncertainty is adding to the pressure on investor sentiment. Concerns over corporate earnings, business costs, interest rates and the overall economic situation are making investors more reluctant to take risks.

The selling has been broad-based rather than confined to a few large-cap stocks.

On 4 October, the DSEX fell 48 points as prices of 291 companies declined. Market capitalisation dropped by around Tk7,700 crore, while turnover fell 25% to Tk542 crore.

The following day, the DSEX fell another 37 points to settle at 5,445. Prices of 284 companies declined, compared with only 54 gainers. 

The selling pressure continued yesterday, with 270 stocks closing lower.

Sector-wise, mutual funds, services and real estate, and general insurance stocks faced selling pressure. In contrast, food and allied and information technology stocks showed some positive movement.

Orion Infusion, Information Services Network and Eastern Cables were among the top gainers. Their share prices rose 7.85%, 7.68% and 7.32%, respectively, according to DSE data.

Trading on the Chittagong Stock Exchange (CSE) also remained negative. Of the 195 issues traded, 120 declined, 53 advanced and 22 remained unchanged.

A total of 31.93 lakh shares and units changed hands on the CSE, with total turnover amounting to Tk17.13 crore.