DSE's Z-category stocks see significant price decline
Stocks in Z-category on the Dhaka Stock Exchange (DSE) experienced a notable drop in Thursday's session as cautious investors opted to sell their shares for more lucrative options.
Out of the 56 stocks in this category, 44 saw price declines, 6 advanced, 4 remained unchanged, and 2 were not traded.
Market insiders attribute this downturn to new investment policies by the Investment Corporation of Bangladesh (ICB). The state-owned investment firm has decided not to purchase Z-category stocks or shares from loan defaulters.
Additionally, ICB will refrain from selling portfolio shares at a loss and will only invest after obtaining adequate business operation information. This policy, effective from 1 July, aims to strengthen ICB's financial base and enhance transparency and accountability in investments.
Thursday, the premier bourse DSE experienced a significant correction for the second consecutive session as investors sold shares to book profits. Share-selling pressure persisted throughout the session, with Z-category stocks contributing to the downturn.
The main index, DSEX, dropped by 62 points to close at 5,507. The Blue-chip index, DS30, fell by 16 points to 1,942, and the Shariah-compliant stock index, DSES, decreased by 12 points to 1,208.
As a result, Thursday's turnover declined by 31.33%, dropping to Tk664 crore from Tk967 crore in the previous session. Among the traded stocks, 36 advanced, 343 declined, and 18 remained unchanged.
Global Heavy Chemicals led the gainers, rising by 9.89% to Tk47.80, followed by Salvo Chemical Industry, 6.65%, Oimex Electrode, 6.09%, NRB Bank, 5.50%, and Midland Bank PLC, 4.71%.
BBS Cables was the biggest loser, followed by Linde Bangladesh, Delta Life Insurance Company, Aamra Technologies, and Eastern Housing.
The most traded stocks on the Dhaka bourse were Sea Pearl Beach Resort & Spa, Salvo Chemical Industry, Orion Infusion, Taufika Foods and Lovello Ice-cream, and Alif Industries Limited.
In its daily market commentary, EBL Securities noted that the equity indices of the Dhaka bourse continued to decline as risk-averse investors liquidated their holdings amid concerns about a potential shift in market momentum.
Sell pressure persisted across the trading floor following a sustained uptrend in previous sessions.
The market sentiment turned sharply negative after the first hour of trading, with the majority of stocks slipping into the red as cautious investors reduced their exposure to the capital market due to an uncertain market outlook.
Sector-wise, pharmaceutical stocks accounted for the highest turnover at 19.0%, followed by engineering at 11.1% and food at 10.9%. Most sectors experienced declines, with services down by 2.9%, travel by 2.7%, and ceramics by 2.6%. Only the jute sector showed slight positive returns at 1.5%.
Meanwhile, at the port city bourse, Chittagong Stock Exchange (CSE), selected indices CSCX and CASPI declined by 76.4 and 128.1 points, respectively. The turnover at CSE stood at Tk9 crore by the end of Thursday's session, with 43 stocks advancing, 212 declining, and 12 remaining unchanged out of the 267 issues traded.
The DSE SME index also decreased by 7 points to settle at 1509, with a turnover of Tk14 crore at the end of the session.