DSEX plunges 63 points as energy crisis, earnings jitters rattle investors

Despite the sharp fall in prices, market participation saw a slight uptick, with total turnover rising 6% to Tk711 crore.

The country’s premier bourse started the week on a dismal note as the benchmark index shed over 60 points today (23 August), ending a temporary breather from the previous session.

Investor sentiment was severely dampened by the ongoing energy crisis and uncertainty surrounding the upcoming earnings and dividend announcements for June-closing companies, according to market insiders.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) plummeted by 63 points, or 1.10%, to settle at 5,722. The blue-chip DS30 index followed a similar trajectory, falling 17 points to close at 2,145.

Market breadth was overwhelmingly bearish, with 324 issues declining compared to only 32 advancing, while 30 remained unchanged.

Despite the sharp fall in prices, market participation saw a slight uptick, with total turnover rising 6% to Tk711 crore.

According to EBL Securities’ daily market review, the capital bourse resumed its downtrend as the persistent energy crisis continues to stifle industrial production.

Concerns are growing over an increase in factory shutdowns and greater reliance on costly alternative sources of power, which are expected to put further pressure on corporate earnings in the coming quarters, the brokerage said.

Sheltech Brokerage Limited noted that the market witnessed significant intraday volatility.

While buying interest in the early minutes lifted the benchmark index to a high of 5,814.13 points, sellers quickly regained control. Selling pressure intensified sharply in the late session, dragging the DSEX toward its intraday low of 5,715.98 points before closing near that level.

On the sectoral front, the textile sector dominated market activity, accounting for 23.3% of the day’s total turnover, followed by general insurance at 13.8% and pharmaceuticals at 11.9%.

Performance across segments was almost entirely negative; the financial institutions sector faced the steepest correction of 2.5%, followed by general insurance and life insurance. In a rare divergence, the ceramic sector emerged as the lone gainer with a marginal 0.8% return.

Individual stock performance featured GBB Power as the top gainer with a 9.55% surge, followed by Sharp Industries and Emerald Oil.

On the losing side, Nurani Dyeing, New Line Clothings, and Tung Hai Knitting were among the worst performers.

The bearish trend was mirrored at the Chittagong Stock Exchange (CSE), where the broad CASPI index dropped by 61 points to settle at 15,429. Trading activity in the port city bourse saw a catastrophic decline, with turnover plunging by 66% to reach only Tk6.46 crore.

Source: The Business Standard