Dhaka stocks extended their losing streak to a third session on Sunday as investors remained cautious over proposed changes to margin-lending rules while the gas shortage raised fresh concerns about corporate earnings.
The DSEX, the broad index of the Dhaka Stock Exchange (DSE), fell 23.9 points, or 0.4 per cent, to 5,860 from 5,884 in the previous session.
The pullback came after hopes of more flexible margin financing had helped lift the index above 5,900 earlier last week.
The market had been driven largely by expectations of changes to margin rules, but buying momentum weakened as investors waited for formal regulatory clarity and grew concerned about the energy crisis, EBL Securities said in its daily market commentary after the closing bell.
The proposed changes could affect the availability of margin financing and, in turn, market liquidity and trading activity, it added.
The Bangladesh Securities and Exchange Commission is considering replacing the price-to-book ratio with a price-to-earnings-based framework for determining eligibility for margin loans in several sectors.
At the same time, the gas shortage is creating a more direct risk for listed companies by constraining factory capacity and potentially weakening earnings.
That combination is keeping investors cautious: uncertainty over margin rules is clouding the market’s liquidity outlook while energy shortages are threatening its earnings outlook.
Selling was broad-based, with 241 of the 396 traded issues declining, against 101 gainers and 53 unchanged.
Turnover, however, rose 22.2 per cent to Tk1,130 crore from Tk930 crore, suggesting active portfolio repositioning even as the index fell. The higher turnover did not translate into broader buying, with investors continuing to rotate rather than commit fresh capital.
General insurance accounted for the largest share of turnover with 26.4 per cent of the DSE total, followed by textiles with 19.8 per cent and pharmaceuticals with 9.6 per cent turnover contribution.
Nearly all sectors closed lower. Life insurance fell 2.4 per cent, jute 2.1 per cent and paper 1.7 per cent. General insurance gained 2.2 per cent while telecommunications rose 0.2 per cent.
The Chittagong Stock Exchange also ended lower, with its Selective Categories’ Index falling 46.6 points and its All Share Price Index declining 68.1 points.
With margin-rule changes still unsettled and gas shortages threatening production, investors have little reason to treat higher turnover as a sign of renewed confidence until the two risks become clearer, according to analysts.
