Selling pressure knocks DSEX lower despite turnover surge

The DSEX fell 9.86 points, or 0.18%, to close at 5,392.82, down from 5,402.68 in the previous session.

The stock market slipped into negative territory today (9 November) as persistent selling pressure outweighed early buying interest, with investors remaining cautious amid a lack of fresh market catalysts and lingering domestic and geopolitical uncertainties.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell 9.86 points, or 0.18%, to close at 5,392.82, down from 5,402.68 in the previous session.

The market opened on a positive note, supported by modest buying interest. However, the initial momentum faded by mid-session as selling pressure intensified.

A brief recovery attempt towards the end of trading failed to lift the index into positive territory.

Despite the benchmark’s decline, turnover rose 17.2% to Tk654.71 crore from around Tk559 crore in the previous session, indicating increased trading activity.

Market breadth remained negative, with 192 issues declining against 135 advancing, while 56 remained unchanged.

The blue-chip DS30 index fell 8.91 points, or 0.43%, to 2,049.46, while the Shariah-based DSES index dropped 4.53 points, or 0.43%, to 1,044.72.

On the sectoral front, textile stocks accounted for the largest share of turnover at 21.9%, followed by fuel and power at 15.3% and general insurance at 11.4%.

Sectoral performance was mixed. Ceramics led the gainers, rising 2.2%, followed by fuel and power and IT, both up 1%. In contrast, jute stocks recorded the steepest decline at 3.9%, while general insurance and mutual funds each fell 0.9%.

According to EBL Securities daily market commentary, the equity market endured another session of sustained selling pressure, as a lack of fresh catalysts dampened bargain-hunting appetite and kept investors largely on the sidelines amid lingering domestic uncertainties and persistent geopolitical headwinds.

The broad index opened on a positive note, with modest buying interest providing support until mid-session. However, the early optimism proved short-lived as mounting selling pressure gradually eroded the initial gains, pushing the market into negative territory. A brief late-session recovery attempt failed to reverse the prevailing cautious sentiment, according to the commentary.

According to BRAC EPL Stock Brokerage, large-cap sectors also posted mixed performance. Fuel and power gained the most, rising 0.96%, followed by non-bank financial institutions (NBFIs), which advanced 0.39%. Pharmaceuticals and engineering edged up 0.04% and 0.03%, respectively. Banks declined 0.59%, while food and allied and telecommunications slipped marginally.

Block trades accounted for 3.9% of total market turnover. Shahjibazar Power Company was the most traded stock, with turnover of Tk29 crore, while its share price rose 4.5%.

The Chittagong Stock Exchange (CSE) also closed lower. Its selected index, CSCX, shed 6.8 points, while the All Share Price Index, CASPI, declined 14.5 points.

Source: The Business Standard