Stocks down for 2 consecutive sessions
Turnover at the DSE dropped by 28.71%, reaching Tk427 crore compared to Tk599 crore in the previous session
The Dhaka Stock Exchange (DSE) indices have experienced a decline for the second consecutive session, as cautious investors booked profits and reduced their market activity, while institutional investors remained observant of the current market conditions.
During this period, some investors shifted their focus to undervalued blue-chip and promising stocks to sustain their funds. Over the two sessions, the DSEX index dropped by 19 points.
On Wednesday, the benchmark DSEX index fell by 11 points, closing at 5,192. Meanwhile, the DSE Shariah Index decreased by 2 points to 1,158, and the DS30 index saw a reduction of 9 points, closing at 1,913.
Turnover at the DSE dropped by 28.71%, reaching Tk427 crore compared to Tk599 crore in the previous session. Among the 398 stocks traded, 103 gained, 228 declined, and 67 remained unchanged.
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Market insiders highlighted that the DSEX has been fluctuating around the 5,100 to 5,200 point range for the last two months. Institutional investors remain largely inactive, with retail investors following suit amid the prevailing challenges.
Key barriers to market growth include high deposit rates, liquidity crunch, low institutional and foreign participation, and ongoing economic challenges worsened by political instability.
These factors continue to overshadow efforts for a market recovery.
The trading session opened on a positive note for the first 10 minutes but gradually declined for the remainder of the day.
Intech Ltd topped the list of gainers, followed by Shinepukur Ceramics, EBL First Mutual Fund, S. Alam Cold Rolled Steels, Energypac Power Generation, Golden Harvest Agro Industries, Simtex Industries, Alif Industries, Tosrifa Industries, and Aman Feed Ltd.
Midland Bank was the top loser, followed by EXIM Bank 1st Mutual Fund, New Line Clothings, Generation Next Fashions, Aramit Group, Nurani Dyeing & Sweater, Phoenix Finance and Investments, Regent Textile Mills, Purabi General Insurance Company, and Metro Spinning Ltd.
Also, Midland Bank, Taufika Foods and Lovello Ice Cream, Orion Infusion, and Grameenphone were among the top turnover stocks on the DSE.
In its daily market commentary, EBL Securities noted that the capital market faced pressure from profit-booking as investors rebalanced their portfolios. This trend led the benchmark index to close in negative territory for two consecutive sessions.
The market remained subdued throughout the session, as cautious investors sought to secure short-term gains, with the market's momentum weakening due to mild volatility.
Regarding sector performance, the Pharmaceuticals sector led turnover with 15.1%, followed by the Banking sector at 14.2%, and the Textile sector at 12.9%.
The market displayed mixed returns, with the Tannery, Mutual Fund, and Travel sectors experiencing the highest corrections, down by 1.3%, 1.1%, and 1.1%, respectively.
Meanwhile, the Paper, Life Insurance, and Textile sectors saw slight gains of 0.8%, 0.6%, and 0.2%, respectively.
The Chittagong Stock Exchange (CSE) also closed in the red, with the Selective Categories Index (CSCX) dropping by 30.0 points and the All Share Price Index (CASPI) falling by 61.7 points.
Among the 182 stocks traded, 52 gained, 105 declined, and 25 remained unchanged. The DSMEX - SME index increased by 25 points to 1,037, with turnover reaching Tk7.56 crore.
