DSE falls as investors cash in gains after 3-day post-budget rally

The Dhaka Stock Exchange ended lower today (16 June), snapping a three-day winning streak as investors moved to lock in profits following a strong post-budget rally that had pushed the benchmark index above the 5,600-point mark.

The benchmark DSEX index of the premier bourse plunged by 35 points, or 0.62%, to close at 5,605, reflecting a cautious shift in investor sentiment after three consecutive sessions of robust gains.

Market analysts observed that while there was selective bargain hunting in attractively valued scrips, it proved insufficient to counter the broad-based selling pressure that intensified as the session progressed.

The blue-chip segment also faced a sharp correction, with the DS30 index slipping by 17 points to settle at 2,110.

Trading activity saw a noticeable contraction, with total turnover on the DSE dropping by 18% to Tk1,196 crore, compared to the previous day's Tk1,456 crore.

According to EBL Securities' daily market review, the market remained volatile throughout the day as participants remained active on both sides of the trading fence. 

However, significant corrections in influential large-cap stocks eventually weighed down the indices, pulling the bourse into negative territory by the closing bell.

Sheltech Brokerage noted in its daily report that the market movement was primarily shaped by profit-taking after the recent advance. While the session opened with modest buying interest and several recovery attempts, selling pressure gradually became dominant through the mid-session. 

It added that the volatility reflected a selective and cautious approach among investors, many of whom appear to be waiting for clearer signs of market stability before committing to large-scale fresh investments.

The market breadth remained bearish, with 240 issues declining against only 109 advancing, while 47 scrips remained unchanged on the DSE floor.

On the sectoral front, the textile sector emerged as the turnover leader, accounting for 19.4% of the day's total volume. This was followed by the banking sector at 12.4% and the general insurance sector at 11.7%.

In terms of returns, the miscellaneous sector faced the steepest decline of 4.1%, driven largely by a heavy sell-off in specific large-cap scrips. The banking and paper sectors also saw significant corrections of 1.5% and 1.4%, respectively.

In contrast, the services sector provided a rare bright spot with a 1.6% gain, while the textile and mutual fund sectors also managed to post marginal positive returns.

Among individual stocks, ICB Employees Provident Mutual Fund topped the gainers' list with a 10% price surge, followed by National Feed Mill, VFS Thread, and BD Thai Aluminium.

In terms of liquidity, Summit Alliance Port was the most traded stock with a turnover of Tk63.20 crore, followed by NCC Bank and IPDC Finance.

On the losing end, Beximco Limited hit the lower circuit breaker, shedding 9.98% of its value, while Midas Finance and Sunlife Insurance also featured among the top losers of the day.

The bearish sentiment was mirrored at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) ended 83 points lower at 9,340. 

The broad CASPI index at the port city bourse dropped by 123 points to settle at 15,271, while turnover declined by 27% to stand at Tk31 crore.