Stocks slip, turnover falls back to 10-month low
DSE turnover fell to a 10-month low, dropping 22% to Tk254 crore, down from Tk326 crore in the previous session
The indices of the Dhaka Stock Exchange (DSE) declined on Thursday (22 May), ending a brief upward trend. The drop in blue-chip stock prices amid ongoing market uncertainty accelerated the downtrend.
DSE turnover fell to a 10-month low, dropping 22% to Tk254 crore, down from Tk326 crore in the previous session.
The benchmark DSEX index edged down by 16 points to close at 4,785. The DSE Shariah Index (DSES) dropped 3 points to 1,047, while the blue-chip DS30 index lost 5 points to settle at 1,777.
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Of the 391 issues traded, 114 advanced, 200 declined, and 77 remained unchanged.
Notable blue-chip losers on the day included Grameenphone, Square Pharmaceuticals, Marico Bangladesh, BRAC Bank, British American Tobacco Bangladesh, Walton Hi-Tech Industries, Unilever Consumer Care, Robi Axiata, and Heidelberg Cement Bangladesh.
Market insiders expressed concern that despite the government's commitment to ensuring a stable stock market, the current leadership of the Bangladesh Securities and Exchange Commission (BSEC) has failed to restore investor confidence. They noted that while the chairman has a banking background, his lack of capital market expertise has left many issues unresolved.
As a result, investor sentiment continues to weaken. Long-term, reputable investors have largely exited the market, leaving it dominated by day traders and, at times, manipulators.
Recent regulatory crackdowns on market manipulation have also contributed to the sharp decline in trading activity in both the primary and secondary markets.
Additionally, rising gas prices are expected to push up production costs and dent corporate earnings. Institutional participation remains weak, while retail investors continue to withdraw, deepening concerns about the market's stability and outlook.
In its weekly commentary, EBL Securities observed that the DSE's brief recovery was unsustainable, as investor sentiment remained subdued amid ongoing uncertainties and a lack of clear catalysts to revive market momentum.
Although the indices remained afloat until mid-session, a wave of cautious selling by risk-averse investors erased early gains, reflecting eroding confidence, the commentary noted.
On the sectoral front, Pharmaceuticals accounted for the highest turnover at 17.2%, followed by Food at 12.9% and Engineering at 11.6%.
Most sectors posted negative returns, with Telecom down 1.7%, Mutual Funds 1.4%, and Tannery 1.3%. In contrast, Paper gained 2.7%, Ceramic 0.5%, and IT 0.3%.
Meanwhile, the Chittagong Stock Exchange (CSE) also closed lower, with the Selective Categories Index (CSCX) falling 14.4 points and the All Share Price Index (CASPI) down 14.6 points.
