Stocks down amid sell-dominance
Stocks experienced a significant sell-off on Thursday amid profit-taking, leading to lower indices and reduced turnover.
The benchmark index DSEX of the Dhaka Stock Exchange (DSE) declined by around 49 points to 5,903, while turnover fell by approximately 20% to Tk 999 crore.
The blue-chip index DS30 dropped by 18 points to 2,179, and the DSE Shariah Index DSES declined by 5.62 points to 1,264 points.
In the previous trading session, indices at the country's premier bourse had snapped a two-day losing streak, with large-cap stocks driving the recovery as the DSEX jumped by 84 points and turnover increased by 22% to Tk 1,243 crore.
On Thursday, 70% of stocks witnessed price declines as they faced selling pressure from quick profit-seekers following the recent rally after the fall of the Sheikh Hasina government on 5 August.
Following the fall of the Awami League government and the resignation of Shibli Rubayat-Ul Islam as chairman of the Bangladesh Securities and Exchange Commission (BSEC) on 11 August, stock investors were hopeful for positive changes in the market.
With this optimism, stocks continued to rally for four straight days until 11 August. Over these four trading sessions, the DSEX increased by 786 points.
Later, on Monday and Tuesday, stocks faced a correction as investors were active on the selling side to book profits, causing the benchmark index to decline by 174 points.
In its daily market commentary, EBL Securities noted that the premier bourse of the country retained its downbeat sentiment following a brief respite, as risk-averse investors continued their cautious selling approach.
The recently heightened optimism gradually cooled due to the weakening strength of the market's momentum.
"The market remained sell-dominant throughout the session as the investment appetite of market participants has somewhat weakened after the market heated up and registered substantial gains, driven by investor euphoria following the changes in the country's political environment," the commentary reads.
On the sectoral front, the banking sector contributed the most to the total turnover of the DSE, accounting for 19.8%, followed by the pharmaceutical sector at 15.2%, and the food and allied sector at 11.9%.
According to the DSE, Grameenphone was the most traded stock on Thursday with a value of Tk 85.52 crore, followed by BRAC Bank at Tk 67.73 crore and Heidelberg Materials at Tk 42.75 crore.
DHB Finance, a non-bank financial institution, topped the gainer chart based on the closing price, with a 9.85% gain to Tk 45.7 per share. Phoenix Finance's share price increased by 9.67% to Tk 10.2 per share, and Olympic Industries' share price rose by 8.98% to Tk 164.9 per share.
On the other hand, Delta Life Insurance was among the top losers, with its share price declining by 5% to Tk 100.7 per share. Typically, a stock listed on the bourses may drop by 3% due to the lower circuit limit, but Delta Life's share price fell by 5% due to a corporate declaration for 2023.
Sonali Life Insurance followed as the second-largest loser, with its share price falling by 2.99% to Tk 68 per share, and Investment Corporation of Bangladesh (ICB) also declined by 2.99% to Tk 64.8 per share.
The port city bourse, Chittagong Stock Exchange (CSE), also ended on a negative note. The selected indices, CSCX and All Share Price Index (CASPI), lost 66.2 and 110.5 points, respectively.
Turnover at the CSE declined by around 41% to Tk 10.74 crore, compared to Tk 18.13 crore in the previous trading session.