Stock down for fifth day as sluggish phase continues amid subdued sentiment
The prolonged slump reflects subdued investor sentiment, as many have reduced their buying activity amid ongoing market uncertainty
The lacklustre streak of the Dhaka Stock Exchange (DSE) continued until Thursday (16 January), with the benchmark DSEX index losing 60 points over the past five consecutive sessions.
The prolonged slump reflects subdued investor sentiment, as many have reduced their buying activity amid ongoing market uncertainty.
Key factors contributing to the decline include high deposit rates, a liquidity crisis, inactivity among institutional investors, the absence of foreign investors, and a challenging economic environment compounded by ongoing political uncertainty, said market insiders.
They said Investors are also panicking over the possibility of some companies being downgraded to the Z category. This concern stems from reports that the boards of certain companies, whose directors are currently abroad, have failed to hold their annual general meetings as required.
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on Thursday, the DSEX index decreased by 9 points, closing at 5,134. The DSE Shariah Index was down by 7 points to 1,151, and the DS30 index was lower by 4 points to 1,894.
The day's turnover at the DSE decreased by 10.57%, reaching Tk364 crore from Tk407 crore compared to the previous session. Among the 399 stocks traded, 141 gained, 196 declined, and 62 remained unchanged.
Indices started on a positive note and climbed during the first 15 minutes of trading before gradually declining for the rest of the session.
Major stocks weighing down the index included Midland Bank, Renata, British American Tobacco Bangladesh Company, Beacon Pharmaceuticals, Olympic Industries, Robi Axiata, Beximco Pharmaceuticals, MJL Bangladesh, Heidelberg Cement Bangladesh, and Best Holdings.
Meanwhile, Trust Islami Life Insurance led the top gainers' list, followed by Rahima Food Corporation, Northern Islami Insurance, CVO Petrochemical Refinery, Peoples Insurance Company, and Sonar Bangla Insurance.
Midland Bank topped the losers' list, alongside Khulna Printing and Packaging, Fareast Finance and Investment, Western Marine Shipyard, Fine Foods, and Olympic Accessories.
In its daily market commentary, EBL Securities noted that the prime index of the Dhaka bourse failed to break out of its downbeat vibe and settled in red territory for five straight sessions as investor sentiment remains subdued amidst uncertainties over the market momentum.
Sellers continued their dominance, although investor participation remained active on both sides of the trading fence, as most investors preferred to stay cautious owing to uncertain market momentum while bargain hunters continued showing interest in certain scrips in anticipation of short-term gains following the recent corrections, according to the commentary.
On the sectoral front, pharma accounted for the highest turnover at 20.9%, followed by engineering at 11.5% and textile at 11.2%.
Most sectors showed weak performance, with notable declines in jute 1.1%, paper 0.8%, and food 0.7%. However, a few sectors recorded gains, including general insurance 1.5%, financial institutions 0.8%, and telecom 0.3%.
The port city bourse, Chittagong Stock Exchange (CSE), also ended in negative territory. The Selective Categories Index (CSCX) and All Share Price Index (CASPI) fell by 22.6 points and 37.9 points, respectively.
