Stocks slip for two straight days

Stocks on the Dhaka bourse extended their losing streak for a second consecutive session today (29 December), as cautious investors largely stayed on the sidelines, leading to a sharp fall in turnover and muted trading activity. 

Market participants said uncertainty surrounding the political landscape ahead of the upcoming national election continued to weigh on sentiment, preventing any meaningful recovery in share prices.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) edged down by 7 points to close at 4,861, extending the downward trend seen in the previous session. The blue-chip DS30 index also lost ground, shedding 9 points to settle at 1,857, reflecting weakness in several heavyweight stocks.

Turnover dropped by 20% from the previous trading day to Tk309 crore, highlighting the lack of investor participation. Of the issues traded on the premier bourse, 142 advanced, 155 declined and 93 remained unchanged, indicating a broadly cautious and directionless market.

EBL Securities said in its daily market review that the capital market witnessed lacklustre trading as most investors remained watchful of the market's momentum amid unfolding political signals related to the national election. 

According to the brokerage, stagnant participation resulted in insufficient support for any sustained rebound, keeping indices under pressure throughout the session.

Despite the overall decline, activity was concentrated in a handful of stocks. City Bank emerged as the most traded stock of the day, followed by Sonali Paper, Al-Haj Textile, Rahima Food and Simtex Industries. 

Brokers said these stocks attracted attention due to company-specific developments and short-term trading interest, even as broader market sentiment remained weak.

Sector-wise performance was mixed, with a few large-cap segments managing modest gains. The food and allied sector posted the highest gain of 0.56%, supported by selective buying in some counters. Fuel and power advanced 0.31%, while engineering rose 0.24%. Non-bank financial institutions also edged up marginally by 0.01%.

In contrast, banks came under selling pressure, with the sector declining by 0.34%. Pharmaceuticals also corrected by 0.35%, while the telecommunication sector posted the steepest fall among large caps, shedding 0.38%.

Prime Finance topped the gainers' list with a 9.09% jump, followed by Sonargaon Textile, which rose 6.55%. BIFC advanced 5.88%, while Sonar Bangla Insurance and Takaful Insurance gained 5.66% and 5.29% respectively.

On the losing side, International Leasing suffered the steepest decline, dropping 9.52%. AIBL First Mutual Fund fell 5.71%, while Zaheen Spinning, ICB Islamic Bank and Makson Spinning also closed lower.

The Chittagong Stock Exchange mirrored the weak trend, with its benchmark CSCX index ending 20 points lower at 8,397. The broader CASPI index dropped 35 points to close at 13,617. Turnover on the port city bourse plunged by 39% to Tk12 crore, reflecting similarly subdued investor activity.