The Dhaka stock market fell for a third straight session on Sunday as concerns over gas supply disruptions, escalating tensions in the Middle East and uncertainty surrounding proposed margin lending rules continued to dampen investor sentiment.
The benchmark DSEX index of the Dhaka Stock Exchange dropped 19.9 points, or 0.34 per cent, to close at 5,784, extending losses after a volatile trading session in which late selling in large-cap stocks erased earlier gains.
Turnover declined 16.9 per cent to Tk780 crore from Tk940 crore in the previous session, indicating investors largely remained on the sidelines amid heightened uncertainty.
Market participants traded cautiously as worries over energy shortages and geopolitical risks added to existing concerns about the Bangladesh Securities and Exchange Commission’s proposed amendments to margin lending rules, EBL Securities wrote in its post-closing market commentary.
The proposed changes have triggered debate over their potential impact on liquidity and leveraged investment, it added.
Despite the broader weakness, insurance stocks attracted fresh buying interest following strong corporate earnings, helping the general insurance sector outperform the market.
Textile companies accounted for the largest share of turnover at 19.2 per cent, followed by general insurance with 11.0 per cent and pharmaceuticals with 10.4 per cent.
Sector performance was largely negative, with mutual funds falling 2.2 per cent, ceramics declining 2.0 per cent and financial institutions losing 1.5 per cent.
General insurance rose 2.9 per cent, while services and food sectors gained 0.6 per cent and 0.2 per cent respectively.
Of the 396 issues traded, 116 advanced, 237 declined and 43 remained unchanged, underscoring broad-based selling pressure.
The Chittagong Stock Exchange also closed lower, with the CSCX index falling 91.9 points and the CASPI declining 141.9 points.
The continued decline highlights investors’ preference for caution as macroeconomic uncertainty and regulatory concerns overshadow positive corporate earnings, leaving the market in search of stronger catalysts to revive risk appetite.
