Fall of Islami Bank stocks drags down index below 5,400 mark after 41 days
On the day, the benchmark DSEX index of the Dhaka Stock Exchange dropped by 83 points, closing at 5,378. This marks its lowest point since 4 August, when the index dropped to 5,229
Islami Bank shares plunged by 9.92% on Sunday (6 October), causing the key index of the Dhaka Stock Exchange to dip below the 5,400 marks for the first time in 41 days.
On the day, the benchmark DSEX index of the Dhaka Stock Exchange dropped by 83 points, closing at 5,378. This marks its lowest point since 4 August, when the index dropped to 5,229.
Investor participation remained sluggish, with daily turnover staying below Tk400 crore, reflecting continued weak market activity.
During the session, 180 issues advanced, while 156 declined and 56 remained unchanged.
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The decline in Islami Bank shares accounted for a 29-point drop in the overall index. Additionally, the combined losses from Square Pharma, LafargeHolcim Bangladesh, Olympic Industries, Khan Brothers PP Woven Bag, and Grameenphone stocks contributed a further 24.4 points to the total decline.
In its daily market review, EBL Securities reported that the benchmark index of the Dhaka bourse continued its downward trend. Investors' sell pressure on certain large-cap stocks further dragged the market into negative territory.
However, many stocks found some support amid the overall market decline, as bargain hunters began to step in and take positions in the undervalued securities after a prolonged correction, the statement read.
EBL Securities further said the indices remained volatile due to subdued investor sentiment across the trading floor as market uncertainty still persists amid escalating regulatory debates.
Meanwhile, general investors gathered on the streets and formed a human chain in front of the Bangladesh Securities and Exchange Commission (BSEC) office in Agargaon. They demanded the resignation of the BSEC chairman in response to the ongoing decline in the stock market.
Meanwhile, on the sectoral front, bank issues exerted the highest turnover, followed by pharma and food sectors.
Islami Bank led the turnover table with shares traded totaling Tk25.58 crore, followed by Midland Bank, BRAC Bank, and SIBL.
Sectors mostly displayed dismal returns, out of which jute, cement and bank exerted the most negative returns on the bourse, while ceramic, paper and tannery exhibited slight gains.
B-category stocks, which paid dividends below 5%, led the gainers' list. Fu-Wang Ceramic saw the largest surge, with its share price jumping 9.83%, followed by notable gains in Fu-Wang Food and RD Food.
