DSE free fall returns amid panic-driven sell pressure

DSEX, the key index of the Dhaka Stock Exchange (DSE), extended its free fall on Monday as panic-driven sell pressure continued to dominate the market owing to the enduring pessimism pervading the trading floor.

Market participation also remained sluggish as total turnover declined by 23.2 per cent to Tk 445 crore, from the previous session’s Tk 580 crore.

DSEX was in a downtrend throughout the day, logging a 0.68 per cent decrease in the market cap compared to the previous trading day, and closed at 5,834.39.

The blue-chip index, DS30, and the Shariah-based index, DSES, closed at 2,024.93 and 1,267.17 points, respectively.

Besides, the SME index of the Dhaka bourse, DSMEX, decreased by 0.09 points, and the market generated a Tk 14 crore turnover — a 17 per cent decrease from the previous session.

Market insiders said that the recent market failed to hold onto the revival spirit as investors turned back to their selling mode after a two-day break owing to the wavering confidence across the trading floor.

The market extended its uptrend in the first hour of the session; however, subsequent choppy trading caused the core index to tumble and close in the red territory again after a short-lived uptrend in the previous two sessions.

The downbeat capital market extended its free fall as panic-driven sell pressure continued to dominate the market owing to the enduring pessimism pervading the trading floor amid subdued market sentiment and rising tensions over the market outlook, EBL Securities said in its daily market review.

It said that the market pulse shifted to correction mode again after a recent short-lived period of optimism due to waning investor confidence stemming from the prolonged bearish vibe in the market. Cautious investors prefer to stay on the sidelines until the market experiences a major trigger to regain positive momentum.

The persistent volatility in the market has prompted cautious investors to partially liquidate their holdings and remain on the sidelines until there is any clear indication regarding market momentum, market insiders said.

BRAC EPL Stock Brokerage in its daily market update said that all the large-cap sectors posted negative performance on the day. NBFI experienced the highest loss at 3.28 per cent while the block trades contributed 8.7 per cent of the overall market turnover.

Stock recovery signs failed to sustain as a prolonged bearish trend frustrated general investors, said a leading broker.

Out of the 396 issues traded, 40 advanced, 317 declined and 39 remained unchanged at the Dhaka bourse.

Asiatic Lab topped the turnover chart, followed by Central Pharma, LafargeHolcim Bangladesh, Best Holdings, and Golden Son.

Rupali Life was the day's top gainer, posting a 4.94 per cent gain, while LafargeHolcim was the worst loser, losing 7.96 per cent.

The Chittagong Stock Exchange (CSE) also ended sharply lower on Monday, with the CSE All-Share Price Index, CASPI, losing 168.13 points to settle at 16,704.12 and the Selective Categories Index, CSCX, losing 101.90 points to close at 10,028.39.

Of the issues traded, 157 declined, 37 advanced and 24 remained unchanged on the CSE.

The port city bourse traded 34.48 lakh shares and mutual fund units with a turnover value of about Tk 16.28 crore.