Dhaka stocks fall for 3rd day

The Dhaka Stock Exchange (DSE) witnessed a third consecutive day of decline today, with cautious investors reducing their buying activity amid a prevailing bearish market trend. 

Market analysts attributed the downturn to a challenging economic environment and ongoing political uncertainty.

The benchmark DSEX index dipped by 1 point to close at 5,151, while the shariah index inched up by 1 point to 1,158. The blue-chip DS30 index also experienced a slight decline, closing 2 points lower at 1,904.

Market turnover contracted by 11.7% to Tk351 crore from the previous session's Tk398 crore. Of the 396 stocks traded, 181 gained, 181 declined, and 84 remained unchanged.

The session commenced on a positive note, with the main index exhibiting an upward trajectory for the initial hour. However, a gradual decline ensued, culminating in a subdued close.

Notable contributors to the index decline included Grameenphone, Square Pharmaceuticals, Robi Axiata, MJL Bangladesh, Islami Bank Bangladesh, Bangladesh Submarine Cables, Padma Oil Co, Renata, Unilever Consumer Care, and Reckitt Benckiser (Bd) Ltd.

Sinobangla Industries placed in the top gainer list followed by Rangpur Dairy & Food Products, Zaheen Spinning, Associated Oxygen, and ICB AMCL Sonali Bank Limited 1st Mutual Fund.

Union Capital placed first on the list of top loser companies, followed by Pragati Life Insurance, Al-Haj Textile Mills, Miracle Industries, and Fine Foods Limited.

In its daily market commentary, EBL Securities noted that the prime index of the Dhaka bourse ended on a flat note following a short-lived positive vibe till the mid-session as investors remained active on both sides of the trading fence while selling dominance on particular large-cap stocks extended the market's waning momentum.

The market saw mixed reactions as the session began with an upbeat momentum as bargain hunters opted to take positions in the beaten-down issues, it said. 

Still, risk-averse investors' subsequent cautious selling approach amid uncertain market momentum eroded the early session optimism, said EBL Securities.

The pharma sector accounted for the highest turnover at 15.6%, followed by the engineering sector at 13.5% and the banking sector at 12.1%. The jute (3.6%), engineering (3.2%), and services (2.4%) sectors saw the highest gains. In contrast, the telecom (1.5%), life insurance (0.5%), and financial institutions (0.4%) experienced corrections.

Meanwhile, the Chittagong Stock Exchange (CSE) also closed in the red. The Selective Categories Index (CSCX) dropped by 9.9 points, while the All Share Price Index (CASPI) declined by 16.9 points.