Stocks open week in red: DSEX drops 51 points
The benchmark index, DSEX, of the Dhaka Stock Exchange (DSE) started the week on a bearish note, declining by 51 points today, driven by a downturn in large-cap stocks such as Square Pharmaceuticals, BRAC Bank, and BAT Bangladesh.
Stocks opened lower and maintained a downward trend throughout the trading session, with the DSEX closing at 5,146 points. The DSE Shariah Index slipped by 2 points to settle at 1,149, while the DS30, the blue-chip index, dropped 19 points to finish at 1,899.
Turnover, a key indicator of the premier bourse, declined by approximately 17%, amounting to Tk302 crore, as investor participation remained subdued.
Most stocks saw price declines yesterday due to selling pressure. Out of the traded stocks, prices advanced for 110, declined for 228, and remained unchanged for 54.
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EBL Securities, in its daily market review, said the downbeat capital market continues its losing trend amid lower market participation as cautious investors shy away from taking positions in equities considering the market's waning momentum, while Square Pharmaceuticals exerted a significant downward impact on the market indices.
Market volatility persisted throughout the session as sellers maintained their dominance, while opportunistic investors preferred to observe the market's trend and sit on cash to look for lucrative investment opportunities following the corrections, read the review.
However, uncertainties over the ongoing economic and political tensions, along with prevailing social unrest, also induced caution among market participants to remain watchful and stay on the sidelines, EBL Securities added.
On the day, Square Pharmaceuticals' shares fell by approximately 5%, contributing around 26 points to the index's decline, according to an EBL Securities report. As the third-largest company in the capital market, its performance significantly impacted the market.
On the sectoral front, bank issues exerted the highest turnover, followed by food and pharma sectors.
Most of the sectors displayed dismal returns, out of which ceramic, textile and paper exerted the most correction, while IT, services and general insurance exerted some gains on the Dhaka bourse.
Meanwhile, loss-making Shyampur Sugar Mills topped the gainers' chart as its share price hit the daily upper limit, jumping 9.91% to Tk120.8 each. It was followed by Doreen Power, which gained 9.74% to Tk25.9, and Hami Industries, which rose 9.45% to Tk82.2.
Energypac Power Generation led the losers' list, with its share price plunging 13.98% to Tk12.3. The company's decision not to pay any dividend for 2023-24, citing heavy losses, contributed to the drop.
Other notable losers included Global Heavy Chemicals and Square Textiles, whose share prices fell by 9.83% and 9.46%, respectively.
