The Dhaka Stock Exchange (DSE) extended its decline on Sunday as investors booked profits and reacted to proposed changes to margin loan rules, with insurance stocks leading a broad market sell-off.
The benchmark DSEX fell 44.6 points, or 0.76 per cent, to close at 5,856 from 5,900 in the previous session. The blue-chip DS30 index lost 16.9 points to 2,210.74, while the Shariah-based DSES index slipped 9.05 points to 1,197.81.
Turnover fell 4.3 per cent to Tk1,070.4 crore, although trading volume rose to 35.4 crore shares from 33.5 crore, indicating investors remained active despite weaker sentiment.
Market analysts said investors initially engaged in selective bargain hunting, helping limit early losses. Selling pressure intensified after regulators released a draft amendment to the margin loan rules, raising concerns that many insurance companies could lose eligibility for margin financing.
Under the proposal, eligibility for financial sector stocks would shift from an earnings-based criterion to one based on net asset value. Bank and non-bank financial institution shares would remain eligible for margin loans until their market prices exceed three times their net asset value per share.
For insurance companies, however, the proposed threshold would be capped at one times net asset value, a significantly tighter requirement that investors fear could make many insurers ineligible for margin financing.
The prospect of reduced access to leverage triggered heavy selling in insurance counters and weighed on broader market sentiment, extending the correction after recent gains.
Pharmaceuticals and chemicals accounted for the largest share of turnover with 14.9 per cent, followed by textiles’ 14.7 per cent and general insurance sector’s 12.5 per cent turnover contribution.
General insurance recorded the sharpest sectoral loss, falling 3.1 per cent. Jute declined 2.0 per cent and life insurance dropped 1.9 per cent.
Mutual funds bucked the trend with a 1.9 per cent gain, while ceramics rose 0.9 per cent and textiles added 0.3 per cent.
Market breadth remained firmly negative. Of the 396 issues traded, 242 declined, 97 advanced and 57 closed unchanged.
Malek Spinning Mills led the turnover chart with Tk28.1 crore in traded value, followed by Sharp Industries with Tk27.9 crore and Techno Drugs with Tk25.2 crore.
Among the day’s gainers, Green Delta Mutual Fund rose 10.0 per cent, United Insurance Company gained 9.81 per cent and DBH First Mutual Fund advanced 9.62 per cent.
Meghna Insurance was the worst performer, falling 8.86 per cent, followed by Global Insurance, which lost 6.89 per cent, and Agrani Insurance, down 6.45 per cent.
