Stocks bleed for second day as DSEX sinks below 4,900

The country's capital market witnessed a sharp decline today (4 December), extending the losing streak for the second consecutive session as dominant selling pressure pushed the benchmark index further below the psychological threshold.

Investor sentiment remained dampened, reflected in the overwhelming number of declining issues compared to those that advanced.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), shed over 40 points to settle at 4,886, marking a significant erosion of equity value.

The downward trend was mirrored by the blue-chip index DS30, which encompasses the best-performing companies. The DS30 plunged by 6 points to settle at 1,891, indicating that even fundamentally strong stocks were not immune to the bearish wave.

Market participation also dwindled, signaling a lack of confidence among investors. Turnover on the premier bourse dropped by 10% to stand at Tk364 crore, down from the previous session. This contraction in trading volume suggests that buyers are staying on the sidelines, adopting a cautious "wait and see" approach amid prevailing economic and political uncertainties.

The market breadth was heavily skewed towards the negative territory. Out of the issues traded on the DSE floor, a staggering 307 companies witnessed price corrections. Only 34 issues managed to advance, while 44 remained unchanged.

Despite the overall gloom, a few stocks defied the market trend. Zeal Bangla Sugar topped the gainers' list, surging by 9.96%, followed closely by Bd Thai Food and Standard Ceramic, both of which rose by 9.86%. Phoenix Finance and National Bank also posted respectable gains of 8.33% and 6.45%, respectively.

On the other hand, the losers' chart was led by Tamijuddin Textile, which shed 12.74% of its value. Non-bank financial institutions faced significant pressure, with Premier Leasing and FAS Finance losing 10.14% and 10%, respectively. Summit Alliance Port and BD Welding also found themselves among the top losers.

In terms of trading activity, Simtex Industries emerged as the most traded stock, leading the turnover chart. It was followed by Bd Thai Food, Shahjibazar Power, Orion Infusion, and Summit Alliance Port, which saw significant hand-to-hand exchange of shares despite the bearish climate.

The port city bourse, the Chittagong Stock Exchange (CSE), also ended the week in the red. The CSCX index dropped by 69 points to close at 8,473, while the all-share price index CASPI ended 114 points lower at 13,747. Turnover at the CSE stood at Tk13.81 crore.