DSEX falls below 5,200 mark again after 13 days

The benchmark index, DSEX, of the Dhaka Stock Exchange (DSE) dropped below 5,200 points today (21 November), the lowest in 13 trading days, driven by continued investor sell-offs amid subdued sentiment and growing concerns over market outlook.

The DSEX dropped by 47 points to settle at 5,197. The other two major indices also declined, with the DSE Shariah Index losing 11 points to close at 1,151 and the DS30, the blue-chip index, dropping by 15.58 points to settle at 1,919.  

The last time the DSEX was seen below the 5,200 mark was on 3 November, at 5,190 points. 

Meanwhile, most stocks experienced price declines amid the selling pressure. 

Of the traded stocks, 66 registered price increases, 263 saw declines, and 54 remained unchanged. Trading activity also remained sluggish, as total turnover on the DSE dropped by 7.4% to Tk363 crore from Tk393 crore in the previous session, according to the DSE.  

DSE data showed that today's session started on a positive note but quickly reversed after the first 23 minutes as selling pressure intensified. The bearish sentiment pushed the indices further down throughout the day, ending with significant losses.

Previously, the DSEX had dipped below the 5,000-point mark for the first time in over four years on 27 October, amid intense bearish sentiment and prevailing uncertainty, raising concerns about the potential for a market bottom.  

The capital bourse briefly paused its prolonged losing streak on 29 October as bargain hunters took positions in stocks based on recent earnings declarations, seeking short-term gains. This followed a regulatory effort to restore investor confidence by forming a committee to investigate the reasons behind the recent market downtrend.  

EBL Securities, in its daily market commentary, said, "The downbeat capital market failed to recover from the persistent pessimism pervading the trading floor, with the benchmark index falling below the 5,200 mark as sell pressure continued to dominate the market amid subdued sentiment and rising tensions over the market outlook." 

"The market remained downbeat throughout the session as investors shied away from taking positions in equities due to the absence of any positive catalysts that could revive waning investor sentiment," the commentary added.

On the sectoral front, bank stocks led the turnover with a 21.2% share, followed by the food and allied sector at 12.9% and pharmaceuticals at 11%.  

Top Gainers and Losers

Khan Brothers PP Woven Bag Industries topped the gainers' list today, rising 5.96% to Tk154.5 per share. Midland Bank followed with a 5.65% increase to Tk35.5, and C&A Textile gained 4.08% to Tk5.1.  

On the losing side, Prime Finance First Mutual Fund saw the highest decline, dropping 9.76% to Tk38.8 per unit. Doreen Power fell by 9.57% to Tk23.6, and Shinepukur Ceramics decreased by 8.39% to Tk12.

The port city bourse, Chittagong Stock Exchange (CSE), also ended in the red. The selected indices (CSCX) and All Share Price Index (CASPI) fell by 55.7 and 87.9 points, respectively.