Stocks tumble amid global concerns
DSEX falls 41 points as Dhaka bourse slips back into losses after brief rebound.
Stocks at the Dhaka bourse slipped back into losses yesterday after a brief rebound in the previous session, as persistent sell-offs driven by cautious investor sentiment eroded early gains.
The downturn came amid heightened global uncertainty following the failure of talks between the US and Iran, prompting investors to offload shares and adopt a wait-and-see approach.
The benchmark index, DSEX, of the Dhaka Stock Exchange (DSE) fell by 41 points to close at 5,230. Market turnover also declined by 5%, while total market capitalisation dropped by Tk2,555 crore to Tk6.85 lakh crore, according to DSE data.
Market breadth remained negative, with 55% of traded stocks declining, compared to 31% advancing, while 14% remained unchanged.
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The decline follows a modest recovery in the previous session when the market snapped a losing streak.
On Sunday, the DSEX gained 14 points after shedding around 60 points in earlier sessions.
Yesterday's trading began on a positive note, with indices staying in the green for the first 38 minutes until 10:38am, supported by early buying interest. However, the momentum proved short-lived as selling pressure, particularly in blue-chip stocks, pulled the indices into losses.
By the end of the session, the Shariah-based index DSES fell by 3 points to 1,057, while the blue-chip DS30 index declined by 31 points to 1,981.
Data showed that around 60% of A-category stocks, typically known for offering over 10% dividends, registered price declines. Meanwhile, 40% of Z-category stocks, considered junk stocks, also lost value.
In contrast, mutual funds posted gains, with 73% of traded funds closing higher.
In its daily market commentary, EBL Securities said the market failed to sustain the previous session's recovery as geopolitical concerns dampened investor confidence.
"Although the market opened on a positive note, the momentum quickly faded as jittery sentiment triggered broad-based sell-offs," the brokerage firm noted.
"Selling pressure intensified in large-cap stocks as the session progressed, dragging the broad index into negative territory and reflecting a lack of confidence among investors," it added.
Among the gainers, Mir Akhter Hossain Ltd topped the chart with a 9.82% rise to Tk31.3 per share. It was followed by Yeakin Polymer (9.03%), Fareast Finance (8.69%), Phoenix Finance 1st Mutual Fund (8.61%), and Premier Leasing (8.3%).
On the losing side, Meghna Condensed Milk Industries led the decliners, falling 4.67% to Tk36.7 per share, despite its operations remaining suspended for years. Other major losers included Apex Tannery (4.33%), KDS Accessories (4.27%), Sena Insurance (4.22%), and Peoples Insurance (3.86%).
