Stocks tumble on political worry

Dhaka stocks started the week on a negative note as investors remained cautious amid rising political tensions surrounding ongoing reforms. 

The benchmark index of the Dhaka Stock Exchange (DSE) slipped below the 5,200 mark today, reflecting the prevailing uncertainty in the market.

The DSEX, the broad index of the bourse, dropped by 18 points, or 0.35%, closing at 5,183 — its first dip below the 5,200 level in eight days. However, the blue-chip index DS30 bucked the trend, gaining 8 points to reach 1,896, driven by strong performances from Beximco Pharma and Grameenphone shares.

Out of the total traded stocks, 253 declined, while only 83 advanced and 62 remained unchanged.

Investor participation decreased, leading to a 15% decline in turnover, which stood at Tk421 crore for the day.

Besides, the Chittagong Stock Exchange (CSE) also ended in the red, with its general index CSCX falling 17 points to 8,832, and the all-share price index CASPI dropping 38 points to close at 14,521.

Market insiders attributed the downturn to investor caution, as political tensions escalate. The lack of clarity regarding the future direction of the market, coupled with the ongoing reform process, has further dampened investor sentiment.

EBL Securities, in its daily market review, noted that the market was dominated by sell-offs throughout the trading session. "Investors remained cautious amid uncertain market momentum due to prevailing political tensions," the report stated. 

It added that the majority of scrips slid into the red as investors preferred to remain watchful, reflecting concerns over the market outlook.

Meanwhile, investor activity remained concentrated in the pharmaceuticals sector, which accounted for 20.4% of the day's total turnover. The banking sector contributed 12.5%, while the engineering sector made up 10% of the total turnover.

Beximco Pharma led the turnover chart, with shares worth Tk20.70 crore changing hands, followed by Shinepukur Ceramics, Square Pharma, and Bangladesh Shipping Corporation.

Sectors mostly displayed dismal returns, out of which paper at 2.3%, jute at 1.6% and non-bank financial institution at 1.4% exerted the most corrections on the bourse, while cement at 1%, pharma at 0.4% and travel at 0.2% exhibited slight positive returns.

Midas Finance topped the gainers' chart, with its share price surging by 9.57% to reach Tk10.3. Other notable gainers included Beximco Pharma, Padma Islami Life Insurance, AB Bank First Mutual Fund and Crown Cement.

On the flip side, EBL First Mutual Fund was the worst performer, with its share price dropping 9.09% to Tk6. Other top losers included Peoples Leasing, First Prime Finance Mutual Fund, Khulna Printing and Alif Industries.