Stocks slip back as selling pressure returns
The benchmark DSEX index plunged 19 points to settle at 5,226, while the blue-chip DS30 index declined 11 points to close at 1,970.
Stocks opened the week on a negative note as renewed selling pressure dragged down key indices on the Dhaka Stock Exchange (DSE) today (17 May), reversing gains from the previous three sessions amid the absence of strong market catalysts.
The benchmark DSEX index plunged 19 points to settle at 5,226, while the blue-chip DS30 index declined 11 points to close at 1,970.
Market breadth remained negative, with 228 issues declining compared to 119 advancing and 45 remaining unchanged, reflecting a broadly bearish sentiment among investors.
Turnover also took a hit, dropping by 13% to Tk868 crore, indicating reduced participation as cautious investors opted to stay on the sidelines.
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According to EBL Securities PLC, the market retraced into correction territory after a brief recovery phase, as sustained selling in major stocks continued to weigh on overall sentiment.
The session began on a relatively stable note, with indices hovering near the flatline in early trading. However, as the day progressed, selling pressure intensified across large-cap stocks, pushing the market into negative territory and extending the weakness observed toward the close of the previous session, it added.
Market analysts pointed to the lack of a decisive trigger to sustain the recent upward momentum in the selective stocks, leading investors to book profits and adopt a more defensive stance.
Heavyweight stocks such as Beximco Pharmaceuticals, Eastern Bank, BAT Bangladesh, NCC Bank and City Bank emerged as major index draggers, contributing significantly to the day's decline.
On the sectoral front, pharmaceuticals dominated turnover, accounting for 14.5% of total market activity, followed by general insurance at 14.2% and engineering at 12.7%.
Despite this activity, most sectors posted negative returns. Services suffered the steepest decline, falling 2.0%, followed by IT, which dropped 1.2%, and life insurance, which lost 1.1%.
In contrast, a few sectors managed modest gains, with non-bank financial institutions rising 4.2%, jute advancing 0.8%, and travel edging up 0.5%.
Among individual stocks, NCC Bank, Bangladesh National Insurance, Dominage Steel, Asiatic Laboratories and Techno Drugs topped the turnover chart, reflecting active investor participation in these counters.
The day's top gainers included Global Heavy Chemicals, which surged 10%, followed by Investment Corporation of Bangladesh, National Feed Mill, SK Trims, and Appollo Ispat, all posting notable gains of over 9%.
On the losing side, Apex Spinning led the decline with an 8.72% drop, followed by Apex Tannery, GSPO Finance, Peoples Leasing and Fareast Finance, all registering significant losses.
Meanwhile, the Chittagong Stock Exchange (CSE) also ended in the red. The CSCX index fell 33 points to 9,031, while the broader CASPI index declined 39 points to settle at 14,675. Turnover at the port city bourse stood at Tk32 crore, mirroring the subdued trading activity seen in Dhaka.
