Stocks sink to 23-week low as year-end approaches

Dhaka stocks slumped amid volatility with the benchmark DSEX index slipping to more than a 23-week low.

At close on Sunday, the index settled with a loss of 72 points or 1 per cent at 66,29—its lowest since August 11 when it was 6,623.

With the sharp fall, the index extended its losing streak for the third session in a row after touching an intra-day low of 6,610 and a high of 6,716.

The Shariah-based index DSES also lost more than 1 per cent or about 15 points at 1,408 while the blue-chip comprising the DS30 index was down 0.95 per cent or 24 points at 2,488.

Indices on the Dhaka stock exchange settled down as investors continued their selling binge on all sectoral stocks as the prolonged bearishness on the market reduced investors’ risk-taking appetite, said the EBL Securities in a note.

“As the economy shifted from the capital market to other productive sectors, resulting in intense volatility in the market,” it said.

Intense selling pressure pushed up the turnover which increased 10.46 per cent to Tk 8,85 crore from the previous session’s Tk 8,01 crore.

Shares of 378 companies were traded, of which 47 registered an increase, 300 recorded a fall, and 31 remained unchanged.

All the sectors suffered sell-off led by jute, real estate, ceramics, travel, tannery, IT, textile, food, engineering, telecom, energy, NBFI and bank. Only insurers avoided the bout of selling pressure.

State-owned Eastern Lubricants was the top loser falling 15 per cent following its corporate declarations and lower-than-expected earnings in the first quarter.

The other top losers included Fuwang Food, Apolo Ispat, Style Craft, Libra Infusion, and Tallu Spinning.

Sonali Paper and Board Mills was the most traded stock, followed by Beximco Ltd, Asia Insurance, Bangladesh Shipping Corporation, Eastern Insurance, Eastern Lubricants and British American Tobacco Bangladesh Company.