Stocks inch down again as market sentiment wavers
The indices of the Dhaka Stock Exchange (DSE) edged down again today, ending a three-day streak of positive performance.
Investors displayed a lack of enthusiasm for trading and engaged in selling, likely due to the ongoing gloomy market conditions.
The prime index, DSEX, dropped by 15 points to settle at 5,712. Meanwhile, the blue-chip index, DS30, decreased by 15 points to 2,086, while the Shariah-compliant index, DSES, increased by 1 point to 1,247.
Turnover for the day saw a significant dip, falling 8.73% to Tk669 crore compared to Tk733 crore in the previous session.
Initially, the indices opened with a positive trend but gradually declined within a few minutes.
After 12:15 pm, the market attempted to return to positive territory but could not sustain the momentum, closing the session lower under selling pressure. A significant portion of blue-chip stocks faced a correction during the session.
Key stocks that contributed to the decline included British American Tobacco Bangladesh Company, Renata, BRAC Bank, Square Pharmaceuticals, Olympic Industries, United Power, Robi, LafargeHolcim Bangladesh, and City Bank.
Of the 397 issues traded at DSE, 169 advanced, 182 declined, and 46 remained unchanged.
In its daily market commentary, EBL Securities stated that the capital market began the week gloomily, with sellers regaining control after a brief period of positive momentum over the last three sessions. This was attributed to declining market confidence amid persistent volatility.
According to the commentary, market volatility continued throughout the session, with sellers dominating while cautious investors opted to sit on cash, waiting for more favourable investment opportunities.
However, the upcoming announcement of June-end corporate earnings is expected to revive market activity, providing investors with opportunities to benefit from positive earnings reports.
Sector-wise, pharma accounted for 16.1% of the day's turnover, followed by banks at 13.3% and fuel and power at 9.8%. Other sectors posted mixed returns, with jute (2.6%), paper (2.5%), and travel (2.4%) showing the most gains, while food (1.4%), mutual funds (1.3%), and cement (1.2%) experienced the most corrections.
Similarly, the Chittagong Stock Exchange (CSE) also ended in the red, with the selected indices, CSCX and CASPI, declining by 12.5 and 21.3 points, respectively. The bourse's turnover stood at Tk5.84 crore. Of the 213 issues traded, 97 advanced, 97 declined, and 19 remained unchanged.
The DSE SME index also showed a bearish trend, settling at 1,173 points. The turnover for this board reached Tk5 crore at the end of the session.