Stocks slip back into red after brief rebound
Highlights
- DSEX drops 29 points to close at 4,791
- Blue-chip DS30 ends 8 points lower at 1,780
- 102 issues advance, 241 decline, 57 unchanged
- Turnover remains subdued at Tk292cr
- Sonargaon Textile tops gainers, First Bangladesh Fixed Income leads losers
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) slipped back into negative territory today (18 May), driven mainly by a decline in large-cap stocks, particularly in the banking sector, reversing a brief recovery from the previous session.
On the day, the DSEX fell by 29 points to close at 4,791, while the blue-chip DS30 index dropped by 8 points to settle at 1,780.
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Market insiders said Saturday's gain merely reflected short-term bargain hunting, as investors sought to capitalise on low-priced, fundamentally strong stocks. However, the momentum failed to sustain amid persistent market weakness.
Market activity reflected the prevailing uncertainty, with only 102 stocks advancing, 241 declining and 57 remaining unchanged.
Trading activity remained subdued, with turnover hovering below Tk300 crore.
EBL Securities in its daily market review said the benchmark index of the capital bourse resumed its bearish headwind with subdued trading activity as investors' sentiment has yet to break the shackles of pessimism due to the absence of any strong positive catalyst to revive the market's momentum.
The benchmark index gradually succumbed to the selling pressure since the beginning of the trading session, it said.
Despite the regulator's meeting with key capital market stakeholders, the lack of any strong positive stimuli failed to sustain the brief positive momentum from the previous trading session and dragged the indices to the negative again with bears continuing to possess the realm of the market momentum, said the brokerage firm.
Large-cap stocks, including Islami Bank Bangladesh, United Commercial Bank and Bank Asia played crucial roles in dragging down the index, the EBL review said.
On the sectoral front, the banking sector led the way, contributing 19.9% to the DSE's total turnover, followed by general insurance at 9.8% and food at 9.1%.
In terms of individual performance, Beach Hatchery topped the turnover chart, followed by City Bank, NRB Bank and Shinepukur Ceramics.
Most of the sectors ended in red, out of which mutual fund, cement and services exhibited the most negative returns on the bourse.
Sonargaon Textile topped the gainers' chart, with its share price surging by 9.71% to reach Tk30.5. Other notable gainers included International Leasing, Phoenix Finance, City General Insurance, Fareast Finance and Bata Shoe.
On the flip side, First Bangladesh Fixed Income Fund was the worst performer, with its unit price dropping 9.75% to Tk3.7. Other top losers included NRB Bank, Bangladesh General Insurance and Baraka Patenga Power.
