DSEX slips to four-week low

Dhaka stocks extended losses on Sunday with the benchmark DSEX slipping to a four-week low as rising inflation, devaluation of local currency against greenback and declining remittance inflow weighed on investor sentiment.

The trading began on a positive note in the morning with the index surging 300 points to hit an intra-day high of 7,283. However, it failed to sustain the momentum and dipped 70 points later.

At close, the index lost nearly 57 points or 0.78 per cent to settle at 7,186, extending its losing streak for the fifth straight session in a row. The index was the lowest since September 19, 2021, when it was 7,191. In the five trading days, it lost more than 181 points.

The outcome could be attributed to the profit-booking, which was inevitable after the long surges, according to dealers. Additionally, institutional selling also dragged the market down, said an analyst at a top investment bank.

The Shariah-based DSES index was down 21 points or 1.34 per cent to 1,546 while the blue-chip comprising DS30 index shed 14 points or 0.51 per cent to 2,705.

The risk-investor opted for quick profits from the early surges against the backdrop of negative news related to the economy, said a trader.

Rising inflation, depreciation of the currency, and decline of remittance inflow also made investors edgy on the trading floor, thereby many have favored being on the sideline for observing the market trend, according to EBL Securities.

“Moreover, investors were reluctant in fresh investments due to consecutive corrections as they believe that the market may decline further as the bull run had overheated the market earlier,” it said.

Rally in some of the heavyweights prevented the market from falling further. Of the heavyweights, British American Tobacco Bangladesh Company (BATBAC), which gained 3.76 per cent, continued more than 30 points to the index.

Beximco share rose over 3 per cent, contributing over 8 points to the index. Grameenphone contributed about 5 points, followed by NRBC Bank 4 points, and IFIC Bank about 3 points to the index.

All the large-cap sectors posted negative performance with NBFI experiencing the highest loss of 2.46 per cent as all the NBFIs were down driven by ICB shedding 3.8 per cent.

Fuel and power came second falling over 2 per cent, pharmaceutical 1.5 per cent, engineering 0.92 per cent, and telecommunication 0.33 per cent.

However, the bank shined soaring over 1 per cent, led by SBAC Bank hitting almost the upper limit circuit breaker at 10 per cent, followed by NRBC Bank—the sixth-largest top gainer of the day.

The DSE turnover stood at Tk 1,655 crore, marking an increase of 15.45 per cent compared to the last trading day.

The worst losers included Orion Pharma, Indo-Bangla Pharmaceuticals, Imam Button, Paper Processing and Packaging, Far East Knitting & Dyeing Industries and Advent Pharma.

Fortune Shoes was the most traded stock, followed by IFIC Bank, Orion Pharma, LafargeHolcim Bangladesh, NRBC Bank, BATBC, and Delta Life Insurance.