DSEX falls below 5,400 to three-month low as losing streak extends to five days

The DSEX lost 39 points to close at 5,379, taking its cumulative decline over the five-day losing streak to 188 points.

The Dhaka stock market extended its losing streak to five consecutive sessions today (14 September), with the benchmark index falling below the 5,400-point mark for the first time in three and a half months as persistent energy concerns and renewed geopolitical tensions in the Gulf drove investors into a defensive retreat.

The DSEX lost 39 points to close at 5,379, taking its cumulative decline over the five-day losing streak to 188 points. The index also hit a three-month low during the session. The market’s total capitalisation declined by around Tk6,400 crore.

The blue-chip DS30 index fell nine points to 2,062, while trading activity weakened sharply. Turnover dropped 15% to Tk486 crore, reflecting investors’ growing reluctance to take fresh positions amid heightened uncertainty.

EBL Securities said persistent concerns over the energy situation and renewed geopolitical tensions had kept investors on the sidelines. Although buyers and sellers were active during the early part of the session, an attempt at recovery quickly faded as selling pressure returned.

The benchmark index initially climbed to an intraday high of 5,454 points on bargain hunting, according to Sheltech Brokerage Limited. However, selling pressure intensified from the middle of the session as investors opted to reduce their exposure and wait for greater clarity on the market and economic outlook.

The DSEX eventually fell to an intraday low of 5,376 points, close to which it ended the session, highlighting the continuing erosion of investor confidence.

Market insiders said regulatory interventions surrounding unusual price movements in individual stocks were also contributing to investor inactivity. The regulator frequently launches investigations after sharp price rises in particular scrips, and such moves can disrupt normal trading dynamics and make investors more cautious, they said.

Influential investors, in particular, have been reluctant to take positions amid the uncertainty, further reducing buying support in the market, according to market participants.

The sell-off remained broad-based, although a few sectors managed marginal gains. Mutual funds recorded the steepest decline, falling 3.5%, followed by life insurance at 3.2% and miscellaneous stocks at 2.7%. Travel stocks gained 0.6%, while the banking sector edged up 0.2%.

Textile stocks dominated turnover, accounting for 25.4% of total trading, followed by general insurance at 15% and banks at 13.4%.

Renata, Southeast Bank, Beximco Pharmaceuticals, BSRM and Islami Bank were among the major stocks weighing on the DSEX.

Standard Insurance led the gainers, rising 6.79%, followed by Bangladesh National Insurance, which advanced 5.71%. Al-Arafah Islami Bank gained 5.36%, while Premier Leasing and First Finance rose 5.26% and 4.65%, respectively.

CAPM BDBL Mutual Fund suffered the biggest decline, falling 8.86%. Beximco dropped 8.01%, while Standard Ceramic, NCC Bank Mutual Fund 1 and Yeakin Polymer declined 7.24%, 7.14% and 7.10%, respectively.

The Chittagong Stock Exchange also suffered a sharp correction. The CSCX fell 84 points to close at 8,908, while the CASPI declined 161 points to 14,553. Turnover on the port-city bourse stood at Tk21.34 crore.

Source: The Business Standard