The Dhaka Stock Exchange (DSE) faced a setback on Monday, as broad-based selling pressure resurfaced, halting the market’s recent recovery.
The DSEX, the broad index of the DSE, declined by 24.0 points, closing at 5,424 points, down from 5,448 points in the previous session.
The market remained subdued throughout the session, with sellers dominating the trading floor as investors took a cautious stance ahead of the upcoming earnings season.
Analysts said that investors’ cautious approach was expected after three months of strong market recovery from a major low in May, largely driven by falling treasury yields.
However, while the decrease in treasury yields helped ease lending and borrowing rates in the economy, leveraged firms have yet to fully benefit from the relief.
These firms are anticipated to report their earnings for June before posting figures for September.
Despite the downturn in the DSEX, market turnover rose by 19.0%, reaching approximately Tk 740 crore on Monday.
On the sectoral front, the pharmaceutical sector led the turnover, contributing 11.2% of the daily total of the DSE, followed by the banking sector with 10.8% and the textile sector with 9.2%.
Most sectors ended the day with negative returns, with the travel sector declining by 2.2%, followed by the textile sector at 1.8% and the ceramic sector at 1.0%.
On a positive note, the life insurance sector gained 2.0%, while the IT sector rose by 1.0% and the tannery sector added 0.5%.
Out of the 397 issues traded, 95 advanced, 254 declined, and 48 remained unchanged.
In contrast to the performance of the DSE, the Chittagong Stock Exchange (CSE) closed on a positive note, with key indices showing modest gains.
