Stocks stretch losing streak to 6th day
On the day, the DSEX declined by 62 points, or 1.34%, closing at 4,615. The blue-chip index DS30 also fell by 15 points to settle at 1,708
The benchmark index DSEX of the Dhaka Stock Exchange (DSE) continued its downward trajectory today (28 May), extending its losing streak to six consecutive sessions.
On the day, the DSEX declined by 62 points, or 1.34%, closing at 4,615. The blue-chip index DS30 also fell by 15 points to settle at 1,708.
Of the traded securities, 63 advanced, 295 declined, and 40 remained unchanged, reflecting broad-based weakness in the market.
Subsequently, the turnover remained sluggish, staying below the Tk300 crore mark, indicating persistent investor caution.
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Over the past six trading days, the DSEX has lost a total of 186 points, while the market capitalisation has shrunk by Tk9,000 crore.
EBL Securities, one of the leading brokerage firms, states in its daily market review— "The benchmark index of the capital bourse plunged further to deepen its free fall as investors' bearish sentiment, exacerbated by heightened political unrest and pre-budget uncertainties, continued to dominate across the trading floor."
Although the BSEC introduced several initiatives to strengthen governance among listed companies, the measures fell short of easing the market's prolonged downturn, says the review.
Additionally, investor concerns over potentially unfavourable dividend declarations due to the central bank's stringent regulatory measures has added further strain to the ailing market, EBL Securities explains.
Saiful Islam, president of the DSE Brokers Association of Bangladesh, told TBS that the current bearish trend—particularly the sharp declines over the past two days—is mainly driven by the approaching extended Eid holiday.
He explained that the Eid-ul-Adha vacation will begin on 5 June and continue until 14 June, totaling around 10 days. "In this context, many investors are selling their shares to liquidate their holdings, as it typically takes at least two days to receive cash after selling stocks. Only those who sell within the next two days will be able to access their funds before the break, which is creating significant selling pressure."
Additionally, investors are avoiding buying shares with margin loans. "If they purchase now, they won't be able to sell during the holiday period, meaning their investments will be locked in. As a result, they'll have to pay interest on those loans for at least 10 days without any trading flexibility," Saiful added.
However, on the sectoral front today, Bank issues exerted the highest turnover at 15.7%, followed by Food at 15.4% and Pharmaceutical at 9.1%.
All the sectors, except Cement, ended in red, of which Non-bank Financial Institutions, Jute and Travel exhibited the most negative returns on the bourse.
