DSEX declines on blue-chip stock selloffs
The main index, DSEX, gained 20.98 points, reaching 5,354.41 points, reflecting investor optimism
The Dhaka Stock Exchange (DSE) indices experienced a decline on Tuesday (12 November), driven by the fall of large-cap stocks as investors opted to book profits amid high market volatility.
The benchmark index, DSEX, closed 35 points lower at 5,298. The Shariah Index fell by 12 points to 1,183, and the DS30 index slipped by seven points to 1,970.
Turnover at the country's premier bourse increased by 0.2%, reaching Tk578 crore. Among the 400 stocks traded, 136 gained, 216 declined, and 48 remained unchanged.
The indices initially opened with an upward trend and continued to rise for the first two hours. However, in the final hour, they entered a correction phase, continuing to decline until the session ended.
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Key stocks contributing to the decline included Islami Bank Bangladesh, LafargeHolcim Bangladesh, Khan Brothers PP Woven Bag Industries, Beacon Pharmaceuticals, BRAC Bank, Robi, Best Holding, Al-Arafah Islami Bank, Bangladesh Shipping Corporation, and National Bank.
On the other hand, Bangladesh General Insurance Company topped the list of gainers at the DSE, followed by Mercantile Islami Insurance, Meghna Insurance Company, Asia Insurance, Global Heavy Chemicals, Paramount Insurance Company, Provati Insurance Company, Runner Automobiles, and Northern Islami Insurance.
Stocks such as Orion Infusion, Fu Wang Food, Sonali Aansh Industries, Oimex Electrode, and Shipping Corporation were among the biggest losers of the day.
In its daily market commentary, EBL Securities noted that the benchmark index of the Dhaka bourse failed to sustain the short-lived recovery seen in the previous session and succumbed to the prevailing downtrend. Investor sentiment remained weak amidst uncertainties regarding market momentum.
While investors remained active on both sides of the trading fence until mid-session, late-session selling pressure dragged the indices into negative territory again, as investor confidence had yet to be regained, it added.
In terms of sector performance, the pharma led the market with the highest turnover at 19.3%, followed by the fuel sector at 10.8%, and the banking sector at 10.0%.
However, most sectors recorded negative returns. The sectors with the largest declines were jute, which dropped by 4.9%, travel, down by 2.5%, and engineering, which fell by 2.1%.
In contrast, a few sectors showed gains, with general insurance up by 3.4%, life insurance increasing by 0.9%, and the food sector rising by 0.8%.
The port city bourse, Chittagong Stock Exchange, also ended in negative territory.
Its key indices saw declines, with the CSCX index down by 16.6 points and the CASPI index decreasing by 33.9 points.
