Stocks slide further as cost-side concerns, geopolitical uncertainty weigh on sentiment
A combination of domestic macroeconomic shifts and geopolitical uncertainty continues to weigh on the bourse, with the benchmark DSEX index of the Dhaka Stock Exchange (DSE) plunging by 15 points to settle at 5,232.
The capital market extended its losing streak for a second consecutive session today (20 April) as investor confidence remained under significant pressure.
A combination of domestic macroeconomic shifts and geopolitical uncertainty continues to weigh on the bourse, with the benchmark DSEX index of the Dhaka Stock Exchange (DSE) plunging by 15 points to settle at 5,232.
The blue-chip DS30 index followed a similar trajectory, dropping 10 points to close at 1,980, reflecting a cautious risk-off sentiment among both retail and institutional participants.
Market analysts at EBL Securities said in their daily review that the recent adjustment in domestic fuel prices has rekindled concerns over rising production costs and broader inflationary pressures in the economy. This domestic factor, coupled with persistent uncertainty surrounding ceasefire negotiations in the Middle East conflict, has significantly dampened the risk appetite of investors.
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The broad-based selling pressure resulted in a substantial erosion of the market's total valuation, with the market capitalisation of the premier bourse dropping by approximately Tk3,000 crore in a single day.
The trading session was characterised by persistent volatility from the opening bell. While buyers made sporadic attempts to reverse the downward trend during the mid-session, the recovery efforts were ultimately overwhelmed by an intensifying wave of selling, according to the EBL Securities.
By the end of the day, the market breadth remained heavily skewed toward the bears, as 207 issues declined compared to 120 advancing, while 62 securities remained unchanged. Despite the fall in prices, market activity saw a slight uptick, with total turnover on the DSE inching up to Tk824 crore.
On the sectoral front, the engineering sector continued to lead the turnover chart, accounting for 17.5% of the day's total trading volume. This was followed by the textile sector at 14.8% and the pharmaceutical sector at 11.8%.
Performance across most sectors remained weak, led by a 1.2% drop in travel and leisure, while jute and cement each declined by 1.0%. In contrast, services and real estate stood out with a 1.5% gain, and tannery and textile posted modest gains.
Several high-cap and influential stocks exerted significant downward pressure on the index during the session, with Islami Bank, Square Pharmaceuticals, City Bank, IDLC Finance, and Uttara Bank emerging as the key contributors to the DSEX's decline.
In terms of liquidity and trading volume, Summit Alliance Port emerged as the most traded stock, followed by City Bank, Dominage Steel, Acme Pesticides, and Khan Brothers PP Woven Bag.
Among individual performers, Nahee Aluminum topped the gainers' list by hitting the 10% upper circuit limit, followed by Evince Textiles and Coppertech Industries. On the losing end, IDLC Finance was the top loser with a 7.75% decline, followed by Hamid Fabrics and several non-bank financial institutions including Fareast Finance, International Leasing, and Premier Leasing.
The bearish sentiment was mirrored at the Chittagong Stock Exchange (CSE), where both key indices ended in the red.
The CSCX declined by 11 points to reach 9,023, while the CASPI shed 27 points to close the day at 14,724. Turnover at the port city bourse also saw a decline, settling at Tk34 crore.
