Bangladesh’s stock market opened the week with its sharpest fall in five months on Sunday as heavy selling pressure pushed the benchmark DSEX index down 103.6 points, with investors turning cautious over prolonged gas and electricity shortages and concerns about corporate earnings.
The DSEX, the broad index of the Dhaka Stock Exchange (DSE), fell 1.8 per cent to close at 5,558 points, down from 5,662 points in the previous session. The fall was the biggest since 5 April, when the index declined 2.06 per cent.
Selling pressure remained strong throughout the session and intensified in the latter half of trading, leading to a broad-based market decline.
Of the 395 securities traded, 343 declined, while only 19 advanced and 33 remained unchanged, showing a sharp deterioration in investor sentiment.
Blue-chip stocks also faced pressure, with the DS30 index falling 24.5 points, or 1.1 per cent, to 2,116 points. The DSMEX index, representing small and medium-sized enterprises, dropped 31.9 points, or 3 per cent, to 1,015 points.
The market downturn reduced the DSE’s total market capitalisation by 1 per cent to Tk 6.92 lakh crore from Tk 6.99 lakh crore in the previous session.
Trading activity also weakened as investors remained cautious. DSE turnover fell 24.4 per cent to Tk 545.3 crore from Tk 720.9 crore a session earlier.
The number of trades declined 9.9 per cent to 1,78,150, while trading volume dropped 13 per cent to 20.4 crore shares.
Textile stocks dominated trading activity, accounting for 28.8 per cent of total turnover, followed by general insurance stocks with 14.2 per cent and pharmaceutical and chemical companies with 11.2 per cent.
Despite leading turnover, textile stocks declined 4.2 per cent. General insurance stocks also fell 4.2 per cent, while paper and printing stocks dropped 3.8 per cent. All sectors ended the session in negative territory.
Sharp Industries, Dominage Steel Building Systems and Saiham Textile Mills were among the major decliners that dragged down the market.
Islami Bank Bangladesh, Pubali Bank, Southeast Bank, Eastern Lubricants Blenders and Mutual Trust Bank were among the few companies that gained during the session.
Sharp Industries was the most traded company, accounting for 3.9 per cent of total turnover, followed by Malek Spinning Mills with 3.8 per cent, Saiham Textile Mills with 3.5 per cent and Paramount Textile with 3.5 per cent of the daily total at the premier bourse.
