DSEX continues to lose steam on selling pressure

The Dhaka Stock Exchange continued to lose steam from Monday till the 4th trading day of the week. At this time the benchmark DSEX index was shed more than 4.7 per cent.

Soaring inflation and dollar price against the local currency might put damper on investor sentiment, dealers say.

In the past week ended on Thursday, the benchmark DSEX index was down 307 points to close at 6,258.

On the other hand, Bank, Cement, ceramics, Engineering, Food & Allied and Textile sectors observed price appreciation while Paper & Printing, Travel & Leisure and General Insurance sectors faced correction.

Stocks of the Dhaka bourse are in the doldrums as escalating exchange rate, the price increases of essentials, and expectations of contractionary economic policies have prompted investors to exert continuous sell pressure throughout the week, aid EBL Securities in a note.

The market observed a sell dominant week and investors saw every short-lived bounce back in the market as an opportunity to sell. Average turnover declined by 25.1 per cent to stand at Tk 810 Crore as against Tk 1080 Crore in the previous week.

Investors were mostly active in Miscellaneous (13.5 per cent), Pharmaceuticals & Chemicals (13.0 per cent) and Food & Allied (9.5 per cent) sectors. All of the sectors witnessed negative performances out of which Services (-11.2 per cent), General Insurance (-10.5 per cent), and Travel (-10.0 per cent) witnessed the most price corrections.

The week’s top gainers included S. Alam Cold Rolled Steels Ltd., Beacon Pharmaceuticals Ltd., Bangas Ltd., International Leasing and Financial Service, FAS Finance & Investment Limited, Fu-Wang Ceramic Industries Ltd., Silva Pharmaceuticals Limited, Islami Bank Bd Ltd, Golden Harvest Agro Industries Ltd. And BD Thai Food & Beverage Limited.

‘Z’ category companies have been kept out from computation of top ten gainer list.

The week’s top losser included Rangpur Dairy & Food Products Limited, ACI Formulations Ltd., Asia Insurance Co. Ltd., Delta Life Insurance Co. Ltd, Sonar Bangla Insurance Ltd., Provati Insurance Company ltd., Genex Infosys Limited, Takaful Islami Insurance Ltd., Islami Insurance and Eastern Insurance Co Ltd.