Dhaka stocks fell sharply on Monday, snapping a four-session winning streak as selling pressure intensified amid investor concerns over higher fuel prices, inflation and their potential impact on corporate earnings.
The Dhaka Stock Exchange’s (DSE) broad-based benchmark DSEX dropped 41.7 points, or 0.7 per cent, to 5,550, from 5,592 in the previous session, with the market remaining volatile throughout the day.
The blue-chip DS30 index declined 15.3 points, or 0.7 per cent, to 2,106, while the small and medium enterprise-focused DSMEX fell 22 points, or 2.1 per cent, to 1,022.
Market capitalisation at the premier bourse declined 0.2 per cent to Tk6.93 lakh crore.
Despite the fall in share prices, trading activity strengthened.
Turnover rose 5.5 per cent to Tk788.70 crore from Tk747.40 crore in the previous session.
The number of trades increased 9.4 per cent to 220,637, while traded volume rose 6.2 per cent to 29.5 crore shares.
The market weakened after the latest rise in domestic fuel prices, alongside continued pressure from higher global fuel prices linked to geopolitical tensions, EBL Securities wrote in its post-closing market commentary.
Investors reduced equity exposure amid concerns that rising costs could affect inflation and company profitability, it added.
Selling was broad-based, with 252 of the 395 traded issues declining, while 99 advanced and 44 remained unchanged.
Textiles were among the weakest sectors, falling 2.0 per cent, followed by paper and printing with a 1.9 per cent decline and travel and leisure with a 1.7 per cent drop.
Mutual funds gained 2.5 per cent, while general insurance advanced 1.4 per cent, making them the few sectors to remain positive during the correction.
Textile stocks dominated turnover, accounting for 22.6 per cent of total trading value, followed by general insurance with 18.9 per cent, pharmaceuticals and chemicals with 9.8 per cent and mutual funds with 9.6 per cent of the daily total of DSE.
Eastern Bank was the most actively traded stock, with turnover of Tk27.71 crore, followed by Sharp Industries with Tk26.37 crore, Envoy Textiles with Tk20.71 crore, IPDC Finance with Tk17.63 crore and Orion Infusion with Tk17.29 crore.
Beximco, Paramount Textile, Feeds and Allied, Reliance Insurance and Saiham Textile Mills were also among the most traded stocks.
ICB AMCL Second Mutual Fund was the top gainer, rising 10 per cent, followed by Crystal Insurance with a 9.97 per cent gain and First Prime Bank Mutual Fund with a 9.65 per cent increase.
Anlima Yarn Dyeing led the decliners, falling 5.38 per cent, while Peoples Leasing and Financial Services dropped 5.26 per cent and Samata Leather Industries declined 5.11 per cent.
