The bearish sentiment on the Dhaka Stock Exchange (DSE) deepened on Monday as broad-based selling continued, marking the fourth consecutive day of losses.
The market indices fell further into negative territory, with the DSEX, the broad index, losing 44.7 points or 0.83%, closing at 5,337 points, its lowest in a month.
The blue-chip index, DS30, also saw a decline, falling by 0.56% to settle at 2,071.57 points.
While bargain hunters briefly supported the market mid-session, the rally failed to hold as selling pressure took over, pushing most stocks into correction in the latter part of the session, EBL Securities wrote in its post-closing market commentary.
Stockbrokers pointed to a recent letter from the Bangladesh Securities and Exchange Commission (BSEC) as a key factor in the market’s struggle.
Acccording to them, the BSEC last week had requested bourses to report investors with annual capital gains of Tk 50 lakh or more. This sparked panic among investors, who feared heightened scrutiny from tax authorities.
Although the letter was later withdrawn, the selloff continued as concerns persisted.
The DSEX at the end of May dropped below 4,600 points for the first time since August 2020 before recovering sharply, helped by a decline in treasury bill and bond yields.
By early September, the index had climbed above 5,600. However, profit-taking amid uncertainties led to the market corrections.
On Monday, investor participation remained low, with market turnover falling by 12.3% to Tk 544.8 crore, the lowest in 2.5 months, down from Tk 621.4 crore in the previous session.
On the sectoral front, Pharmaceuticals led with a 16.1% contribution to the daily turnover, followed by Banking at 15.4% and Textiles at 11.8%.
Nearly all sectors posted negative returns, with Textile, Travel, and Life Insurance sectors seeing the steepest declines. However, Services and Telecom sectors showed slight gains.
Out of 397 issues traded, 43 advanced, 301 declined, and 53 remained unchanged.
The Chittagong Stock Exchange (CSE) also ended in the red, with the major index CSCX falling by 64.8 points or 0.7%, closing at 9,274 points.
