DSEX slips for second day, but insurance stocks shine
The benchmark index, DSEX, of the Dhaka Stock Exchange (DSE) lost 31.5 points, or 0.58%, to finish the day at 5,379 points, compared to 5,411 in the previous session. The blue-chip index DS30 shed 18 points to close at 2,086.
Dhaka stocks closed lower for the second consecutive session today (20 August), dragged down by sell pressure in pharmaceuticals, paints, non-bank financial institutions, and blue-chip scrips. However, insurance companies defied the downtrend and topped the day's gainers' chart.
The benchmark index, DSEX, of the Dhaka Stock Exchange (DSE) lost 31.5 points, or 0.58%, to finish the day at 5,379 points, compared to 5,411 in the previous session. The blue-chip index DS30 shed 18 points to close at 2,086.
Market turnover also fell, dipping 8.1% to Tk953 crore from Tk1,035 crore the day before. Out of 398 issues traded, 124 advanced, 223 declined, and 51 remained unchanged, reflecting a cautious mood among investors.
Brokerage firm EBL Securities, in its daily market commentary, said that trading opened on a balanced note with active participation from both buyers and sellers. However, as the session progressed, sell-offs intensified, pushing indices deeper into the red.
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The brokerage attributed the cautious stance to investors reassessing the potential impact of the draft amendment to margin rules on overall market momentum.
"Although market sentiment appeared steady until mid-session, late-hour sell pressure dominated the trading board, dragging market indices into negative territory," it said.
Insurance leads gainers
Against the overall bearish trend, insurance stocks surged as lingering concerns over margin rules for life insurance companies eased. General insurance and life insurance were the best-performing sectors of the day, advancing by 4.6% and 2.9% respectively, while the IT sector also managed a modest gain of 2%.
EBL Securities said insurance stocks emerged as gainers as prevailing concerns over margin rules for life insurance companies have been alleviated.
Information Service Network and Paramount Insurance hit the highest allowable daily limit with gains of 10% each. Eastern Insurance and Central Insurance advanced 9.97% apiece, while Meghna Cement also joined the day's top gainers with a 9.91% rise.
Index draggers
On the flip side, heavyweights such as Beximco Pharmaceuticals, Berger Paints, Investment Corporation of Bangladesh, Walton, and LafargeHolcim Bangladesh pulled the index lower, offsetting the upbeat performance of insurance shares.
Among sectors, textile stocks slid 1.9%, non-bank financial institutions fell 1.8%, and travel and leisure declined 1.8%, exerting significant drag on the market.
Pharmaceuticals dominated the turnover chart, accounting for 17.7% of the day's transactions, followed by textiles (10.6%) and banks (9.6%).
Bangladesh Shipping Corporation, Beach Hatchery, Beximco Pharma, City Bank, and Techno Drugs featured among the most actively traded scrips by value.
Meanwhile, several small-cap stocks witnessed steep declines. Standard Ceramic tumbled 7.45%, Jute Spinners fell 6.66%, and Exim Bank shed 5.88%. Mithun Knitting and Desh Garments dropped 5.85% and 5.47% respectively, rounding out the day's biggest losers.
The downbeat mood was mirrored at the Chittagong Stock Exchange (CSE), where both the Selective Categories Index (CSCX) and the All Share Price Index (CASPI) settled in the negative territory. The CSCX declined by 50.3 points while the CASPI fell by 75.8 points.
