Stocks slide again as sell-off continues
Market insiders attributed investors' cautious stance to the ongoing uncertainty, as most investors preferred to stay watchful during the earnings season.
Stocks at the Dhaka bourse continued to slide for the third consecutive session, with the DSEX — the benchmark index of the bourse — shedding 110 points as sell-offs gripped the market.
Meanwhile, in the three trading sessions at the bourse since 6 to 8 October, market capitalisation, the current value of a publicly traded company, dropped by Tk8,277 crore to Tk7.20 lakh crore, according to the DSE data.
Market insiders attributed investors' cautious stance to the ongoing uncertainty, as most investors preferred to stay watchful during the earnings season.
Amid the selling pressures, today (8 October), the fourth trading session of the week, 55% stocks traded at the bourse witnessed price decline, and turnover fell 22% to Tk612 crore, according to the DSE.
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DSEX lost 39 points to settle at 5,337 points today, while DSE Shariah index lost 12 points to 1,149 points and DS30, the blue-chip index lost 13 points to 2,051 points.
At the opening of the trading session, stocks opened on a positive note, but this lasted only five minutes as selling pressure gripped the market. The indices turned red and remained down until 10:24 am, before bouncing back as buyers became active.
Despite the ups and downs throughout the session, the market finally ended in the red, with the DSEX shedding 39 points.
A senior official at a brokerage firm said the recent market downturn was mainly driven by the decline in banking stocks. He explained that the government's recent decision to raise the source tax on interest income from government and BSEC-approved bonds—from 10% to 15%—may have weighed on investor sentiment. Since banks are the major investors in these instruments, they will now face a higher immediate tax burden.
"Although the additional source tax is adjustable against the final tax liability and may not significantly affect banks' overall profitability, the move has dampened investor confidence," he added. "This negative sentiment has contributed to the current market downturn."
Pioneer Insurance topped the gainer chart as its shares price surged by 9.93% to Tk52 each, followed by Green Delta by 7.88% to Tk58.8 each, Simtex Industries by 7.20% to Tk23.8 each, Nitol Insurance by 5.79% to Tk29.2 each, and CVO petrochemicals by 4.65% to Tk211.2 each.
On the other hand, Union Bank topped the loser list as its shares price declined by 9.09% to Tk2 each, followed by Social Islami Bank by 8.77% to Tk5.2 each, Exim Bank by 8.51% to Tk4.3 each, ICB Islami Bank by 8% to Tk2.3 each, and National Bank by 7.89% to Tk3.5 each.
CVO Petrochemical Refinery, a fuel and power sector firm, top traded stock on the DSE with trading value of Tk22.94 crore.
Followed by Rupali Life Insurance with Tk20.52 crore, Orion Infusion with Tk17.10 crore, and Sonali Paper with Tk16.98 crore and Kay & Que (Bangladesh) with Tk16.52 crore.
