Stocks extend freefall for third day
Stocks were on a downward trend for the third consecutive session on Wednesday, with investor confidence waning amid unrest in factories, signalling economic uncertainty in the coming days.
On the day, the benchmark index DSEX of the Dhaka Stock Exchange (DSE) plunged over 47 points to close at 5,739, while the blue-chip index DS30 ended 19 points lower at 2,113.
In the last three sessions, the DSEX lost 90 points, and the market capitalisation decreased by Tk7,000 crore, closing at Tk6.94 lakh crore. The turnover – a crucial market indicator – dropped by 18% to Tk593 crore, the lowest in six sessions, as investor participation decreased.
Among the traded issues, 81 advanced, while 264 declined, and 52 remained unchanged.
The Chittagong Stock Exchange (CSE) also closed in the red, with its general index CSCX falling by 41 points to close at 9,908, and the all-share price index CASPI ending 63 points lower at 16,438.
The turnover at the port city bourse also dropped by 76% to Tk7.65 crore compared to the previous session.
Market insiders said the dividend declaration season started in September, but investors were concerned about the announcements by listed firms due to unfavourable economic conditions.
Additionally, ongoing worker unrest in various factories further heightened investor worries, leading them to refrain from investing funds, they added.
Several stock brokers said investors were adopting a wait-and-see position as a conflict arose between the securities regulator and the DSE regarding the appointment of independent directors to the bourse’s board.
They added that the regulator appointed independent directors while ignoring the DSE’s proposal, raising concerns about the regulator’s authoritarian behaviour. This situation has unsettled investor sentiment, discouraging them from investing, they noted.
EBL Securities said in its daily market commentary, “The benchmark index of the Dhaka bourse extended its correction mode for three consecutive sessions as risk-averse investors continued their sell-off and preferred to observe the market’s trend amid current volatility.”
Market volatility persisted throughout the session as sellers continued their dominance due to the weakening strength of the market’s momentum, it added.
On the sectoral front, banking stocks accounted for the highest turnover, contributing 21.2% to the total turnover at the DSE, followed by pharma stocks, which added 15.8%, and food, 9%.
BRAC Bank topped the turnover table with a value of Tk47.59 crore, followed by Agni Systems, IBN Sina Pharmaceuticals, and Grameenphone.
Most sectors displayed dismal returns, with engineering, non-bank financial institutions, and telecom exerting the most corrections on the DSE, while service, fuel, and power exhibited slight positive returns.
Shinepukur Ceramics – a concern of Beximco Group – was the top gainer, with its share price jumping by 9.52%. It was followed by Prime Life Islami Insurance and Central Insurance.
Fareast Finance, Ambee Pharma, and Renwick were the worst performers of the day.
