Stocks tumble as political uncertainty weighs on investor sentiment
Despite the higher activity, sentiment remained distinctly bearish, as losers overwhelmingly outnumbered gainers
Stocks at the Dhaka bourse suffered a sharp decline on Sunday as growing political concerns prompted investors to step back, triggering broad-based sell-offs across the market.
The benchmark DSEX index lost 49 points to close at 4,978, snapping the recent recovery momentum and signalling renewed caution on the trading floor. The blue-chip DS30 index also plunged by 17 points to finish at 1,917, reflecting sustained pressure on major large-cap stocks.
Market participation, however, remained relatively buoyant, with turnover rising 12% to Tk492 crore compared to the previous session.
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Despite the higher activity, sentiment remained distinctly bearish, as losers overwhelmingly outnumbered gainers. Out of the traded issues, 306 declined, only 57 advanced, and 28 remained unchanged. The day's intense selling spree wiped out around Tk7,000 crore from the market's capitalisation.
EBL Securities, in its daily market review, noted that the capital bourse began the week on a "dismal note" as cautious investors stayed on the sidelines while awaiting clearer signals regarding the evolving political situation.
Although the indices managed to stay marginally positive until mid-session, aided by brief bouts of buying interest, the sell-off intensified in the latter half of the day, dragging most scrips deep into the red, it added.
Sectoral performance painted a similarly downbeat picture. Engineering stocks accounted for the highest share of turnover at 12.6%, closely followed by textile at 12.6%, and fuel and power at 12%.
However, the majority of sectors posted negative returns, with non-bank financial institutions and mutual funds each dropping 2.4% and the IT sector losing 2%.
Only the jute and paper sectors managed to stay afloat, posting modest gains of 3.6% and 1.3% respectively.
Loss-making and speculative firms dominated the gainers' list, further underscoring the day's unusual trading pattern amid heightened volatility.
Zeal Bangla Sugar topped the chart with a 9.95% rise, followed by Khulna Printing at 9.75% and BD Thai Food at 9.43%. Regent Textile and Global Heavy Chemical also posted notable gains.
On the losers' end, Lub-rref Bangladesh plunged the most with an 18.89% decline, while Premier Leasing, Fareast Finance and Peoples Leasing each dropped 10%. Simtex Industries also registered a sharp fall of 9.97%.
The bearish trend was mirrored at the port city bourse as well. Both the Selective Categories Index (CSCX) and the All Share Price Index (CASPI) of the Chittagong Stock Exchange ended lower, falling by 32.7 points and 60.9 points respectively.
