Large-cap stocks’ losing spree weighs down index
Today, DSEX, the broad index of the Dhaka Stock Exchange (DSE), declined by 48 points and settled at 5,373 points, compared to 5,422 points in the previous trading session
The major index of the country's premier exchange opened the week on a low note, weighed down by declines in large-cap stocks such as Islami Bank, Beximco Pharma, and LafargeHolcim Bangladesh.
Today, DSEX, the broad index of the Dhaka Stock Exchange (DSE), declined by 48 points and settled at 5,373 points, compared to 5,422 points in the previous trading session. The blue-chip index also ended 15 points lower at 1,969.
According to EBL Securities' daily market review, the decline in Islami Bank shares accounted for a 15.8-point drop in the overall index. Additionally, the combined losses from Beximco Pharma, LafargeHolcim Bangladesh, and BAT Bangladesh stocks contributed another 10 points to the total decline.
Meanwhile, market participation remained sluggish, with total turnover decreasing by another 7% to Tk350 crore compared to Tk376 crore in the previous session. Among the traded stocks, 119 advanced, while 225 declined, and 52 remained unchanged.
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EBL Securities noted in its daily market commentary that the country's capital bourse began the week on a disappointing note. Although there was a brief period of optimism during the first hour of trading, it was quickly overshadowed by significant selloffs across major sectors. This trend ultimately pushed the markets lower, reflecting declining investor confidence.
Most investors are being cautious ahead of the upcoming corporate earnings declarations, while the prevailing volatility across the trading board induced risk-averse investors to shy away from taking fresh positions in equities, the report added.
On the sectoral front, the pharmaceuticals sector accounted for the highest contribution to total turnover at 19%, followed by banks at 16.3% and the IT sector at 10.3%.
The top four stocks accounted for 17% of the total turnover, led by Agni Systems with a turnover of Tk21.62 crore. Techno Drugs, BRAC Bank and Grameenphone followed on the list.
Market insiders reported that investors are withdrawing their investments from Agni System by selling off shares in response to a directive from the regulator. The regulator has asked an investigation into the recent unusual price hike of the company's shares on the stock exchange.
Most sectors displayed dismal returns, with engineering, ceramics, and non-bank financial institutions exerting the most negative returns on the bourse, while mutual fund, textile, and fuel and power exhibited marginal gains.
Capitec Grameen Bank Growth Fund topped the list of gainers, with a 10% increase in its unit price to Tk9.9 each, followed by BDCOM Online with a 9.83% rise to Tk26.8, and Fareast Knitting and Dyeing, which gained 9.69% to reach Tk18.1.
Meanwhile, RSRM Steel led the losers' list as its share price fell by 9.09% to Tk11 each, followed by Walton, which dropped 6.81% to Tk487.9, and Tallu Spinning, down 6.77% to Tk5.5.
