Dhaka Stocks Extend Losing Streak to Third Session

The DSEX closed lower after late selling erased gains above 5,900. Photo: Collected

Stocks on the Dhaka Stock Exchange (DSE) extended their losses for a third straight session on Sunday as concerns over domestic energy supplies and global geopolitical tensions continued to weigh on investor sentiment.

The sustained decline pushed the DSE's market capitalisation below the Tk7 lakh crore mark for the first time in recent weeks.

The benchmark DSEX index fell 19 points, or 0.34%, to close at 5,784. Over the past three trading sessions, the index has lost 114 points, reversing the previous week's upward momentum. The blue-chip DS30 index also declined six points to finish at 2,186.

Market breadth remained negative, with 240 stocks declining, 116 advancing and 33 remaining unchanged.

Trading activity also weakened, with daily turnover dropping 17% from the previous session to Tk780 crore.

The three-day slide wiped out nearly Tk8,500 crore in market value, reducing the DSE's total market capitalisation to Tk6.98 lakh crore.

According to EBL Securities' daily market review, the market remained in a corrective phase as lingering concerns over possible gas supply disruptions to industrial units and heightened geopolitical tensions in the Middle East kept investors cautious.

Uncertainty surrounding proposed amendments to margin lending rules also discouraged investors from taking fresh positions, even in fundamentally strong stocks.

The market remained volatile throughout the session. Although investors were active on both the buying and selling sides, profit-taking in several large-cap stocks during the final trading hour pushed the indices back into negative territory.

Despite the broader weakness, the general insurance sector attracted buying interest, supported by positive earnings announcements from several companies, EBL Securities said.

The textile sector accounted for the largest share of turnover at 19.2%, followed by general insurance with 11% and pharmaceuticals with 10.4%.

Most sectors ended the day lower, with mutual funds posting the sharpest decline of 2.2%, followed by ceramics and financial institutions.

In contrast, the general insurance sector emerged as the best performer, gaining 2.9%, while the services and food sectors also posted modest gains.

Among individual stocks, Bangladesh National Insurance was the day's top gainer, rising 9.96%, followed by ML Dyeing, BD Thai Food and Aamra Technologies.

CAPM IBBL Mutual Fund led the losers, falling 9.02%, followed by Fareast Life Insurance, Meghna Pet and National Housing.

The bearish trend was even more pronounced at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) dropped 91 points to 9,444 and the broad CASPI index fell 141 points to 15,478.

Trading activity at the port city bourse also weakened sharply, with turnover plunging 74% to Tk5.15 crore.