Dhaka stocks slip back into red as late selling wipes out early gains

Stocks at the Dhaka bourse failed to stay in the green today (3 December) as late-hour selling pressure dragged the market into negative territory, erasing early gains driven by a brief rally in the morning session.

The DSEX, the key benchmark index, fell by 23 points to close at 4,927, as most share prices declined, particularly among large-cap stocks. 

This came despite a 7% increase in turnover to Tk405 crore and a Tk2,234 crore rise in total market capitalisation to Tk6.87 lakh crore.

The decline follows Tuesday's minor rebound of 36 points, which came after the index had shed 113 points over the previous two sessions.

DSE data show that trading opened on a positive note today. In the first 38 minutes, the DSEX gained 40 points as most share prices edged up.

But, the momentum quickly reversed as selling pressure intensified through the session, pushing the market back into the red.

By the close, 236 stocks had declined, 93 had advanced and 65 remained unchanged.

According to data from the LankaBangla portal, BRAC Bank, Islami Bank, National Bank, and IFIC Bank were the major index draggers, while Orion Infusion, ML Dyeing, BD Thai, Orion Pharmaceuticals, and Southeast Bank were among the index pullers. 

Market insiders said over some past trading sessions, stocks have been continuing a bearish trend as investors continued to sell off shares amid rising political uncertainty and fresh concerns triggered by the central bank's decision to wind up nine non-bank financial institutions (NBFIs).

Market observers added that the recent merger of five listed banks had already unsettled investors, many of whom "returned empty-handed", and now the move to liquidate the troubled NBFIs has created anxiety among investors, who fear potential effects across the financial sector.

Loss-making firms dominate gainer list 

Loss-making and non-compliant firms dominated the day's gainer list, with several hitting the upper circuit after rising by the maximum 10% allowed in a single session, according to DSE data.

Standard Ceramics – a company that has been posting losses for years – topped the list as its shares jumped by 10% to Tk64.9. Newline Clothings also rose by the maximum limit to Tk4.4, while Zeal Bangla Sugar Mills gained 9.95% to Tk120.4.

On the other end of the board, Premier Leasing led the losers, dropping 10.39% to Tk0.69. It was followed by International Leasing, down 9.87% to Tk0.73; Simtex Industries, down 9.74% to Tk25; Fareast Finance, down 9.58% to Tk0.66; and BIFC, which fell 9.52% to Tk1.9.