Selling pressure pulls DSEX down 19 points
Turnover rose 3.4% to Tk720 crore, but 240 of 395 traded issues declined as investors remained cautious over corporate earnings and the sustainability of the recovery.
The Dhaka Stock Exchange (DSE) benchmark index fell nearly 19 points on Thursday (1 October) as renewed selling pressure and investor caution over weaker corporate earnings weighed on the market.
The DSEX, the broad index of the DSE, dropped 18.79 points, or 0.34%, to settle at 5,531.65, reversing the previous session's brief recovery.
The DS30, which tracks 30 leading blue-chip companies, fell 4.86 points, or 0.23%, to 2,103.55.
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The Shariah-based DSES index declined 2.20 points, or 0.20%, to 1,100.26, while the large-cap CDSET index fell 2.35 points, or 0.21%, to 1,103.26.
According to EBL Securities, market momentum remained under pressure from the opening bell as investors stayed cautious about the sustainability of the recovery.
"The lack of conviction over a sustained recovery led sellers to regain dominance in the final hour of trading, dragging most stocks into negative territory," the brokerage said in its market commentary.
Despite the decline in indices, turnover rose 3.4% to Tk720 crore from Tk700 crore in the previous session.
Of the 395 issues traded on the DSE, 240 declined, 84 advanced and 71 remained unchanged.
Non-bank financial institutions (NBFIs) recorded the highest decline among major sectors, falling 1.20%. Food & Allied declined 0.44%, followed by Fuel & Power at 0.32%, Pharmaceuticals at 0.26%, Engineering at 0.15% and Banks at 0.14%.
Telecommunications was the only major sector to post a gain, rising 0.01%.
EBL Securities said Services and Travel were the worst-performing sectors, both falling 1.8%, while General Insurance declined 1.7%. Tannery was the only sector to post a positive return, gaining 0.4%.
Textile stocks accounted for the largest share of market turnover at 32.5%, followed by General Insurance at 13.6% and Pharmaceuticals at 8.7%.
IPDC Finance PLC was the most traded stock, with shares worth Tk51 crore changing hands. Its share price, however, fell 6.5%.
Block trades accounted for 8.4% of the day's total market turnover, according to BRAC EPL Securities.
In contrast, the Chittagong Stock Exchange ended the session higher. Its Selective Categories' Index (CSCX) gained 19.4 points, while the All Share Price Index (CASPI) rose 17.3 points.
Market participants said investors may remain cautious until there is greater clarity over corporate earnings, the broader economic outlook and the sustainability of the market recovery.
As a result, despite a modest increase in turnover, the DSEX continues to struggle to establish a sustained upward trend.
