Erosion in BRAC, Square, Islami Bank stocks weighs down on market
On the day, DSEX, the broad index of the Dhaka Stock Exchange (DSE), declined further by 11.8 points and settled at 5,323 points, compared to 5,335 points in the previous trading session
The losing streak in the country's prime exchange extended for the third consecutive day on Tuesday, weighed down by erosion in large-cap stocks, including BRAC Bank, Square Pharma, and Islami Bank.
On the day, DSEX, the broad index of the Dhaka Stock Exchange (DSE), declined further by 11.8 points and settled at 5,323 points, compared to 5,335 points in the previous trading session. The blue-chip index also ended 3 points lower at 1,939.
According to EBL Securities' daily market review, the decline in BRAC Bank shares accounted for a 10-point drop in the overall index. Additionally, the combined losses from Square Pharma, Islami Bank, and BAT Bangladesh stocks contributed another 22.4 points to the total decline.
Meanwhile, market participation remained sluggish, with total turnover decreasing by another 3% to Tk355 crore compared to Tk366 crore in the previous session. Among the traded stocks, 142 advanced, while 195 declined, and 63 remained unchanged.
EBL Securities said in its daily market commentary that the benchmark index of the Dhaka bourse failed to settle in positive territory, despite a short-lived upbeat momentum during the mid-session, as the market has yet to recover from the persistent pessimism pervading the trading floor.
The market experienced mild seesaw trading throughout the session, as opportunistic investors took positions in beaten-down stocks, while cautious investors viewed every rebound as a chance to offload their holdings amid the prolonged bearish sentiment, the report added.
On the sectoral front, the banking sector accounted for the highest contribution to total turnover at 28.9%, followed by pharmaceuticals at 16.5% and the food sector at 9.7%.
The top six stocks accounted for 27% of the total turnover, led by BRAC Bank with a turnover of Tk 34.87 crore. Square Pharma, Islami Bank, Grameenphone, Agni Systems, and Lovello followed on the list.
Most sectors displayed dismal returns, with general insurance, life insurance, and services exerting the most negative returns on the bourse, while IT, paper, and telecom exhibited marginal gains.
Khan Brothers PP Woven Bag topped the list of gainers, with a 9.96% increase in its share price to Tk 132.4 each, followed by GPH Ispat with a 7.43% rise to Tk 26, and Aftab Auto, which gained 7.02% to reach Tk 33.5.
Meanwhile, Tosrifa Industries led the losers' list as its share price fell by 8.33% to Tk 19.8 each, followed by Meghna PET, which dropped 6.69% to Tk 23.7, and BIFC, down 6.45% to Tk 8.7.