Market weighed down by bank stocks

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) opened the week lower, mainly due to a decline in banking stocks.  

The DSEX closed 10 points, or 0.2%, lower at 5,237 points. Similarly, the blue-chip index DS30 saw a slight decrease of 1.86 points, ending the day at 1,903.  

Market activity reflected a mixed trend, with 144 stocks advancing, 184 declining, and 67 remaining unchanged.  

According to the EBL Securities daily market review, notable stocks such as United Commercial Bank, Grameenphone, IFIC Bank, National Bank, Pubali Bank, Social Islami Bank, and City Bank were the primary contributors to the decline in the DSE broad index. 

Additionally, trading hours were shortened by 40 minutes due to Ramadan, leading to a 14% decrease in market turnover. The day's turnover stood at Tk421 crore, down from Tk487 crore in the previous session.  

This adjustment in trading hours is a seasonal measure observed during the holy month, impacting overall market activity.  

In its market commentary, EBL Securities stated that the capital bourse observed a subdued trading session as investors preferred to remain cautious of the market's momentum during the Ramadan season, while some profit-booking sell pressure remained prevalent in particular stocks.  

Market indices observed mild volatility throughout the session, with sellers dominating as most investors adopted a cautious stance to monitor market trends, it added.  

On the sectoral front, the textile sector led the way, contributing 14% to the DSE's total turnover, followed by the pharmaceutical sector at 13.2% and the engineering sector at 12.6%.  

In terms of individual performance, Orion Infusion emerged as the top performer on the turnover chart, with shares worth Tk20.70 crore traded during the day. It was followed by Intraco Refueling, with trades worth Tk10.10 crore, and RD Food, which saw trades amounting to Tk10 crore.  

Sectors showed mixed returns, with the tannery sector leading with a 1.7% gain, followed by the travel sector at 0.4% and the pharma sector at 0.3%. However, investors saw losses in the IT sector, which declined by 1.6%, as well as in the ceramic and life insurance sectors.  

Struggling HR Textile topped the gainers' chart as its share price surged by 9.89% to reach Tk40.  

Other notable gainers included Fortune Shoes, RSRM Steel, Safko Spinning, and Shurwid Industries. However, among these, only Fortune Shoes remains operational, as the other companies are currently out of production.  

On the flip side, Shinepukur Ceramics was the day's worst performer, with its share price dropping 9.04% to Tk16.1. The decline was driven by profit-booking pressure following a significant surge in its recent rally.  

Other top losers included Khulna Printing & Packaging, ADN Telecom, and Fu-Wang Food.  

Chittagong Stock Exchange also witnessed a negative session. The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) decreased by 17.2 points and 25.6 points, respectively.