Selling pressure drags DSEX down as investors tread carefully on earnings
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) surrendered 48 points, or 0.89%, to settle at 5,482 points.
Dhaka stocks opened the week on a downbeat note for a second consecutive session as risk aversion gripped investors, pushing benchmark indices sharply down on both bourses amid caution over ongoing fiscal year-end earnings disclosures and broader economic headwinds.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) surrendered 48 points, or 0.89%, to settle at 5,482 points. The blue-chip DS30 index followed suit, slipping 18 points, or 0.87%, to close at 2,085 points.
Market capitalisation on the premier bourse witnessed a significant contraction of Tk7,700 crore, while daily trading turnover plunged by 25% to Tk542 crore.
Market breadth deteriorated heavily across the floor, with 291 issues declining against 66 advancing, while 28 scrips remained unchanged.
Keep updated, follow The Business Standard's Google news channel
In its daily review, EBL Securities noted that trading commenced on a dismal note as persistent selling pressure dominated from the opening bell. Although the market briefly recovered after the initial plunge, sustained selling pressure kept most scrips in negative territory throughout the session.
Brokerage firms attributed the weakness to two key factors.
Sheltech Brokerage Limited said in its daily commentary that investor sentiment was weighed down by caution over the fiscal year-end earnings and dividend announcements of June year-end companies, alongside growing concerns about a recessionary macroeconomic outlook. Unrelenting sell-offs dragged the benchmark index to an intraday low of 5,482 points, where it closed.
Market analysts observe that near-term market direction will depend largely on upcoming earnings disclosures, regulatory measures by the Bangladesh Securities and Exchange Commission (BSEC) to improve liquidity, and developments in regional economic stability.
Major banking and pharmaceutical stocks led the market decline, with BRAC Bank, Beximco Pharmaceuticals, National Bank, Islami Bank and Pubali Bank weighing heavily on the index.
Sector-wise, losses were broad-based. Ceramics posted the steepest decline at 2.3%, followed by IT at 2.1% and Mutual Funds at 1.9%. Jute bucked the trend, gaining 3.5%, while Non-Bank Financial Institutions rose 2.3% and Paper edged up 0.3%.
Despite the broader market contraction, trading remained concentrated in a few sectors. Textiles accounted for the largest share of turnover at 28.1%, followed by general insurance at 14.9% and pharmaceuticals at 10.3%.
The day's most actively traded stocks included Saiham Textile, Paramount Textile, Malek Spinning, Dominage Steel, and Sonali Life Insurance.
In the individual price charts, Investment Corporation of Bangladesh (ICB) led the gainers' list with a 9.92% surge, followed by Bangladesh Lamps with 8.72%, Sonar Bangla Insurance with 7.67%, Sonali Life Insurance with 7.16%, and Nurani Dyeing gaining 7.14%.
On the losing side, Saif Powertec registered the highest drop of 9.21%, followed by Information Services Network at 8.52%, Bangladesh Industrial Finance Company (BIFC) at 6.06%, National Bank at 5.88%, and Peoples Leasing declining by 5.55%.
A similar bearish trend played out on the port city bourse. The Chittagong Stock Exchange (CSE) ended significantly lower, with its CSCX index falling 96 points to close at 9,004, while the broader CASPI index plummeted 171 points to settle at 14,660.
