Stocks in DSEX end lower for a fourth consecutive day, influenced by pessimistic market sentiments
The Dhaka Stock Exchange (DSE) experienced a fourth consecutive session of losses, with the benchmark DSEX index falling by 57 points or 1.05%, closing at 5,351[3]. This downward trend was primarily due to profit-taking by investors, which weighed on market sentiment and triggered continuous selling pressure[1][2].
Investors who had booked gains during prior rallies opted to realize profits, leading to a decline in demand and downward movement in stock prices. Additionally, a cautious stance by investors ahead of the upcoming earnings season further tempered buying interest, contributing to the sell-off[2][3].
Sector-wise, the highest turnovers were seen in the Bank, Pharmaceutical, and Textile sectors, but most sectors posted negative returns. The Cement, Ceramic, and Fuel & Power sectors experienced significant corrections[1][3]. Notable losers included AIBL First Mutual Fund, which saw a 9.09% decrease in its unit price, and Nitol Insurance, Regent Textile, and Bay Leasing, which experienced losses of 7.94%, 7.90%, and 6.66% respectively[1].
On the other hand, some sectors such as Jute, paper, and tannery posted some gains. Apex Tannery was the day's top gainer, with a 10% increase in its share price, while Stylecraft, Anwar Galvanizing, and Rahim Textile also saw significant gains of 9.97%, 9.95%, and 9.95% respectively[1].
The market breadth was negative, as declining stocks far outnumbered advancing ones. Of the 401 issues traded, 109 advanced, 247 declined, and 45 remained unchanged[1]. The Shariah index declined by 8 points to finish at 1,162[2].
The market entered the red territory again in the latter half of the session due to mounting sell pressure on certain large-cap stocks, according to EBL Securities[3]. Over the past four sessions, the market capitalisation of the DSE fell by Tk4,400 crore to Tk7.12 lakh crore[4].
Meanwhile, the Chittagong Stock Exchange (CSE) also closed lower, with the Selective Categories Index (CSCX) losing 96 points and the All Share Price Index (CASPI) shedding 156 points[3]. Sectors mostly displayed negative returns, with general insurance, non-banking financial institutions, and cement exerting the most corrections on the bourse[3].
In conclusion, the extended losing streak of the DSE during those sessions was driven by investors locking in profits after previous gains, increased market caution ahead of earnings reports, and widespread sectoral sell-offs. The market capitalisation of the DSE fell by Tk4,400 crore over the past four sessions[4].
Investors took a cautious approach ahead of the upcoming earnings season, contributing to the sell-off in the Dhaka Stock Exchange. Furthermore, the continuous selling pressure, triggered by profit-taking among investors, resulted in a decline in demand and downward movement in stock prices.
