DSE starts week on bearish note as indices slide

DSEX lost 130 points last week amid persistent selling pressure.

The Dhaka Stock Exchange (DSE) started the week on a bearish note today (30 August), as widespread selling pressure across major sectors dragged its benchmark indices lower.

The broad-based DSEX index fell 41.39 points, or 0.73%, to close at 5,614.28, as investors continued to offload shares amid concerns over the impact of the ongoing energy crisis and persistent domestic economic headwinds on corporate earnings.

The Shariah-compliant DSES index declined 4.42 points, or 0.39%, to 1,128.12, while the blue-chip DS30 index dropped 12.66 points, or 0.59%, to 2,122.23, according to DSE data.

Despite the fall in indices, market turnover increased 11% to Tk518.03 crore, with 1.63 lakh trades executed involving more than 18.98 crore shares.

Market capitalisation declined by Tk1,477 crore to Tk6.96 lakh crore as prices of most listed shares fell.

Of the total market capitalisation, equity securities accounted for Tk3.49 lakh crore, while debt securities, mainly Treasury bills and bonds, accounted for Tk3.43 lakh crore.

The latest decline came after a sharp sell-off last week. Over the four trading sessions, the DSEX lost 130 points, or 2.25%, while total turnover fell 49% to Tk2,286 crore. Average daily turnover also declined 36.88% during the week.

In the previous week’s four trading sessions, the DSEX fell 130 points, or 2.25%, with total turnover declining by 49% to Tk2,286 crore, while the average daily market turnover dropped by 36.88%.

DSE data showed market breadth was heavily negative, as prices for nearly 79% of traded stocks declined. A total of 392 issues were traded on the DSE, of which 309 declined, 49 advanced, and 34 remained unchanged.

EBL Securities in its daily market commentary said, the downbeat capital market endured wave of heavy selling in the opening session of the week, defying the brief recovery effort in the previous session, as concerns over a potential downturn in corporate earnings amid persistent domestic headwinds kept investors largely on the sidelines and weighed on overall market sentiment.

“From the outset of the session, the broad index remained on a downward trajectory; although the market attempted to recover in mid-session, widespread risk aversion and persistent late-session selling pressure dragged the index further into negative territory,” it said.

On the sectoral front, Textile sector stocks accounted for the highest share of turnover by 31%, followed by General Insurance by 10% and Bank 9.5%.

Almost all the sectors posted negative returns, where Mutual Fund, Services and Ceramic exhibited the most corrections, while only Jute, Travel and Engineering sector stocks exhibited the highest returns on the bourse.

In terms of individual stock movements, the day’s trading session saw selective interest in textile, insurance, and manufacturing equities, while mutual funds dominated the losers’ list.

Saiham Cotton and Saiham Textile emerged as the top gainers of the day, alongside Sena Insurance, Monno Fabrics, and Sonali Aansh surged despite the wider market downturn.

Conversely, investor sentiment remained heavily subdued toward the mutual fund sector, with EXIM Bank 1st Mutual Fund, PF 1st Mutual Fund, AIBL 1st Islamic Mutual Fund, and ICB AMCL Second Mutual Fund leading the loser board alongside medical equipment supplier JMI Syringes and Medical Devices.

The port city bourse, CSE, ended in negative terrain. The Selective Categories’ Index (CSCX) and All Share Price Index (CASPI) lost 55.6 points and 75.3 points, respectively.

Source: The Business Standard