Stocks continue losing streak for third day

The Dhaka Stock Exchange's (DSE) benchmark index, DSEX, experienced a continuous decline over three consecutive sessions following the central bank's tightening of the money market, dealing a fresh blow to investor sentiment.

The DSEX fell by 29 points today (9 May) to settle at 5,661. In the last three sessions, the DSEX lost a total of 66 points and the market capitalisation fell by over Tk6,000 crore, closing at Tk7.07 lakh crore.

EBL Securities said in its daily market review, the premier bourse of the country extended its downbeat vibe as investor sentiment observed a fresh blow amidst emerging external challenges arising from tightened money market conditions following the latest directives from the central bank that hampered the market's recovery from its prolonged depressed state.

Sellers ended up on the dominant side despite the market being flat until mid-session with active participation from both sides of the trading fence, while sell pressures piled up in the latter half of the session as risk-averse investors preferred to liquidate their holdings amidst concerns over the market outlook, it added.

Saiful Islam, president of the DSE Brokers Association of Bangladesh, told The Business Standard that the market is currently grappling with a liquidity crisis.

He expressed concern that the heightened policy rate would elevate the cost of funds, presenting a significant challenge for the stock market.

Additionally, with the reintroduction of the market-driven lending rate by the Bangladesh Bank, controlling interest rates have become crucial, as failure to do so could significantly hinder liquidity support in the market, he added.

On the day, a total of 93 scrips advanced on the DSE, 258 declined and 41 remained unchanged.

But the turnover rose by 5% to Tk911 crore, compared to the previous session.

The pharma sector contributed the highest 21.3% to the DSE's daily turnover, followed by textile and food sectors.

Asiatic Laboratories topped the turnover chart with turnover of Tk39 crore, closely followed by Malek Spinning and Best Holdings.

Most of the sectors displayed dismal returns, out of which non-bank financial institutions suffered the most with a 2.1% decrease in market capitalisation, followed by paper and ceramics.

However, the services, jute and textile sectors exhibited slight positive returns.

Saif Powertec claimed the top spot on the gainer chart, with its share price soaring by 9.91% to Tk25.5, followed by Legacy Footwear and Indo-Bangla Pharma.

Beacon Pharma performed the poorest among stocks on the day, followed by HR Textile and Dulamia Cotton.

The port city bourse, Chittagong Stock Exchange (CSE), also settled on the red terrain. The CSE all-share price index CASPI fell by 81 points to 16,231 and the general index CSCX lost 48 points to 9,771. 

The turnover at the CSE dropped over 49% to Tk57.91 crore.