DSEX drops down to 3-year low

The key index DSEX of the Dhaka Stock Exchange (DSE) plunged to a three-year low today (16 May), driven by a selling spree amid bearish market sentiment.  

At the end of the session, the DSEX declined by 9 points, closing at 5,517, extending the losing streak for the fourth consecutive day.

Three years ago on 3 May 2021, DSEX stood at 5,511 points.

During the last four sessions, DSEX lost 179 points, while the DSE lost over Tk9,000 crore in market capitalisation.

During Thursday's session, 122 scrips advanced, 215 declined, and 57 remained unchanged.

On Thursday, daily turnover at the country's premier bourse increased by 29% to reach Tk676 crore.

In its daily market commentary, EBL Securities said, "The benchmark index of the capital bourse extended its losing streak to the last trading session of the week as investors preferred to sell off their holdings due to the bearish sentiment regarding the market momentum."

The market remained dominated by sellers, driven by investors' negative market sentiment that continued to persist, leading the bear to stay in the controlling position to conclude the session in negative territory, it said.  

According to market analysts, the fear among the investors stemmed from proposed amendments to margin loan regulations and the proposal of imposing tax on capital gains above Tk40 lakh.

Pharma sector issues witnessed the highest turnover, followed by food and textile sector stocks.

Across various sectors, negative returns dominated, with jute, non-bank financial institutions, and services showing the most significant declines on the bourse.

On the other hand, the life insurance, cement, and IT sectors experienced the highest gains.