Stocks extend losses amid political tensions

The benchmark index of the Dhaka Stock Exchange (DSE) edged lower for the third consecutive day, weighed down by subdued investor participation amid escalating political tensions.

The DSEX shed 10 points to close at 5,136 yesterday, marking its lowest level in 18 days. Previously, the index stood at 5,017 points on 29 October.

Over the past three sessions, the DSEX has lost a total of 109 points, while market capitalization has declined by approximately Tk5,500 crore. Meanwhile, the blue-chip index, DS30, dipped by 3 points, ending the day at 1,896.

Daily turnover remained subdued at Tk319 crore, as most investors hesitated to make further investments amid fears of economic uncertainty driven by rising political tensions, according to market insiders.

Out of the 394 issues traded, 148 advanced, 163 declined, and 83 remained unchanged.

The port city bourse, Chittagong Stock Exchange (CSE), also ended the session in the red. Its general index fell by 11 points to 8,766, while the all-share price index, CASPI, dropped by 23 points to 14,396.

In its daily market review, EBL Securities stated that the benchmark index of the Dhaka bourse failed to remain in positive territory, extending the market's declining momentum as cautious investors refrained from taking positions in equities. This hesitation stemmed from uncertainties over the market outlook, driven by ongoing economic and political tensions, along with prevailing social unrest.

Although the market opened higher, it failed to sustain the momentum for long as the benchmark index succumbed to day-long volatility. Investors remained active on both sides of the trading fence, while selling pressure on specific large-cap stocks triggered the extended downtrend, the review added.

Large-cap stocks, including Square Pharma, BRAC Bank, and Renata, experienced declines that significantly contributed to the drop in the Dhaka bourse's key index.

However, gains in shares of Power Grid, Islami Bank, and BAT Bangladesh helped prevent a steeper fall, according to EBL Securities.

On the sectoral front, banking stocks recorded the highest turnover, contributing 17.9% to the DSE's total, followed by the food sector at 13.2% and pharmaceuticals at 11.7%.

Sectoral performance was mixed, with jute delivering the highest gain of 3.8% for investors. In contrast, the life insurance, telecom, and pharmaceuticals sectors posted negative returns, further weighing on market sentiment at the DSE.

Emerald Oil topped the gainers' chart, with its share price surging by 9.79% to Tk 26.9, followed by Power Grid, Anwar Galvanizing, and Asiatic Laboratories.

On the other hand, Global Heavy Chemical was the day's worst performer, with its share price plunging by 10% to close at Tk 19.8. It was followed by declines in VAML BD Finance Mutual Fund, Midland Bank, and New Line Clothings.