Stocks continue fall as panic grips investors

Stocks on the Dhaka Stock Exchange (DSE) plunged further today, with the benchmark DSEX index extending its losing streak to six consecutive sessions as mounting economic and regulatory uncertainties continued to shake investor confidence.

On the day, the DSEX dropped by 23 points to close at 5,074 and the DS30 index, which tracks blue-chip stocks, fell by 3 points to 1,872.

Analysts have attributed the recent market decline to a mix of factors, with panic selling following the sudden hike in gas prices being a key trigger. 

The price increase is expected to significantly raise production costs, particularly for industrial sectors. This prompted investors to reassess risks and scale back their investments, further weakening market sentiment.

Concerns also grew over the government's ongoing negotiations with the International Monetary Fund (IMF), with investors fearing that the loan may come with strict conditions.

Despite the bearish sentiment, turnover on the DSE edged up by 3.5% to Tk351 crore from the previous session's Tk339 crore on the day, as some investors selectively picked undervalued stocks with long-term potential or shifted funds into blue-chip stocks to safeguard their investments.

However, institutional investors remained largely inactive, and retail investors also retreated amid challenging conditions. 

According to EBL Securities, the relentless bearish trend continues due to the prevailing pessimism, leaving investors in a state of uncertainty. 

Out of 396 issues traded, 101 advanced, 243 declined, and 52 remained unchanged. 

On the sectoral front, pharmaceuticals led the day's turnover with 18.8%, followed by banks at 11.2% and general insurance at 10.6%. 

The cement, travel and mutual fund sectors saw the most corrections. On the other hand, general insurance rose by 1.3%, and telecom edged up by 0.1%.