DSE extends losses as gas, power shortages weigh on sentiment; DSEX falls 46 points

Dhaka stocks fell for another session today (12 October), with nearly 79% of traded companies losing value on the Dhaka Stock Exchange (DSE), as economic uncertainty and weak sentiment kept investors on the sidelines.

The benchmark DSEX index lost 46.2 points, or about 0.85%, to close at 5,404, down from 5,451 in the previous session. Turnover fell 20% from the previous session to Tk453 crore.

Turnover stood at Tk453 crore, down 20.4% from Tk566 crore in the previous trading session, reflecting weaker trading activity amid cautious investor sentiment.

According to DSE market data, 385 issues were traded yesterday. Of them, 303 declined, 47 advanced and 35 remained unchanged.

The DS30 index, which represents blue-chip stocks, fell nine points to 2,095. However, the DSES, the Shariah-based index, rose 12 points to 1,071.

Market participants said gas and electricity shortages are disrupting production and business operations, hurting corporate earnings and profitability. Lower profits could also affect dividend payouts, while rising operating costs are squeezing margins.

Analysts said the market remained under pressure due to weak buying interest and low trading activity. Speculative trading has kept investor interest concentrated in overvalued stocks, while fundamentally undervalued stocks could become more attractive as treasury rates have fallen significantly in recent months.

In its market commentary, EBL Securities said the capital market remained entrenched in a prolonged downward trajectory as concerns over weak corporate earnings, persistent domestic challenges and geopolitical uncertainty continued to erode investor confidence.

The brokerage said market indices remained on a downward trajectory from the beginning of the session as sector-wide sell-offs reflected widespread risk aversion and persistent selling pressure.

On the sectoral front, textile stocks accounted for the largest share of turnover at 25%, followed by general insurance at 10.8% and engineering at 9%.

Financial institutions led sectoral losses, declining 3.6%, followed by mutual funds, which fell 2.9%, and general insurance, down 2.7%. Jute stocks, however, posted the highest sectoral gain of 2.4%.

National Bank led the gainers, rising 8.33%, followed by GBB Power, which gained 8.26%, and Prime Textile Spinning Mills, up 8.21%.

Among the biggest losers, MBL 1^st Mutual Fund fell 9.88%, Phoenix Finance 1^st Mutual Fund declined 9.76%, and CAPM IBBL Islamic Mutual Fund dropped 9.49%.

Evince Textiles, Beximco and Sonali Aansh Industries were the most actively traded stocks by turnover.

The bearish trend also continued on the Chittagong Stock Exchange (CSE). The CASPI, the broad index of the port-city bourse, fell 84 points to 14,551, while the CSCX declined 53 points to 8,946. Turnover on the CSE stood at Tk29 crore.