Stocks fall for fifth day in a row
Stocks edged down on the opening day of the week, extending their losing streak for a fifth consecutive session, as investor confidence remained subdued amid ongoing workers' unrest in various industries.
DSEX, the broad index of the Dhaka Stock Exchange (DSE), declined by 49 points today and settled at a 2.5 week-low of 5,679, while the blue-chip index DS30 fell by 14 points to close at 2,100.
The turnover at the DSE edged up by 0.6% to Tk678 crore against the previous session.
Among the traded issues, 64 advanced, 289 declined, and 44 remained unchanged.
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The Chittagong Stock Exchange (CSE) also closed in the red, with its general index CSCX falling by 88 points to 9,787 and the all-share price index CASPI dropping 141 points to 16,237.
EBL Securities, in its daily market review, said the country's capital bourse started the week on a gloomy note, marking five consecutive sessions of decline as sellers regained control after a short-lived positive momentum in the morning, induced by waning market confidence due to the prevailing volatility.
The market saw mixed reactions as the session began with an upbeat momentum, but the indices retraced to negative as risk-averse investors' continued cautious selling approach eroded the early session optimism, it added.
In the last five sessions, the DSEX lost 150 points, while the market capitalisation dropped by Tk7,000 crore to close at Tk6.94 lakh crore.
Market insiders said the dividend declaration season started in September, but investors were concerned about the announcements by listed firms due to unfavourable economic conditions.
Additionally, ongoing worker unrest in various factories further heightened investor worries, leading them to refrain from investing funds, they added.
Several stock brokers said investors were adopting a wait-and-see position as a conflict arose between the securities regulator, Bangladesh Securities and Exchange Commission, and the DSE regarding the appointment of independent directors to the bourse's board.
They added that the regulator appointed independent directors while ignoring the DSE's proposal, raising concerns about its authoritarian behaviour. This situation has unsettled investor sentiment, discouraging them from investing, they noted.
Meanwhile, on the sectoral front, pharmaceutical stocks accounted for the highest turnover, contributing 19.3% to the total turnover at the DSE, followed by banks, adding 18.4%, and food 10.7%.
Linde Bangladesh topped the turnover table with a value of Tk32 crore as it declared the highest-ever interim 4,100% cash dividend to its shareholders.
The other top traded stocks were BRAC Bank, Olympic Industries, IBN Sina Pharma and Acme Laboratories.
Almost all the sectors displayed dismal returns, with paper, life insurance, and ceramic exerting the most corrections on the DSE, while jute exhibited slight positive returns.
SBAC Bank was the top gainer, with its share price jumping by 8.33%. It was followed by Libra Infusion, Sikder Insurance and Agni Systems.
Rupali Life Insurance, Intraco Refueling, Sea Pearl Beach Resort and SK Trims were the worst performers of the day.
