Broad-based selloffs drag DSEX down amid volatility, merger fears

Stocks ended lower on Sunday as the capital market kicked off the week with broad-based selloffs.
The benchmark index of the Dhaka Stock Exchange (DSE), DSEX, dropped 68.08 points to close at 5,381.30.
According to EBL Securities, weakened investor sentiment triggered persistent selling pressure, dragging most stocks into the red for consecutive sessions.
The blue-chip index DS30, which tracks 30 leading companies, fell 23.70 points to 2,083.44, while the Shariah-based DSES index declined 19.24 points to 1,159.
Market activity was dominated by selling pressure as cautious investors cut exposure amid heightened volatility and waited for fresh catalysts to revive sentiment, EBL Securities noted.
Md. Ashequr Rahman, managing director of Midway Securities, told The Financial Express that the DSE rally, which began in June, was initially driven by blue-chip companies. By August, however, junk stocks had taken over in fueling the rally, making a correction unavoidable. He added that the recent steep decline in the index was also linked to concerns after the NBR reportedly sought profit-and-loss details of BO accounts directly from brokers, a move that triggered fear among investors.
Meanwhile, Md. Shakil Rizvi, director of the Dhaka Stock Exchange and managing director of Shakil Rizvi Stock Limited, said market sentiment was further shaken by rumours surrounding the proposed merger of five listed banks. Speculation that shareholders of these banks may receive nothing post-merger has led to a decline in their share prices, putting additional pressure on the overall market.
Islami Bank Bangladesh, Beximco Pharmaceuticals, Khan Brothers PP Woven Bag Industries, LafargeHolcim Bangladesh, and Beacon Pharmaceuticals collectively accounted for 16.1 points of the DSEX's decline.
Turnover stood at Tk 6.21 billion, down 5.1 per cent from the previous trading day.
Out of 396 issues traded, 39 advanced, 307 declined, and 50 remained unchanged.
Khan Brothers PP Woven Bag Industries Limited led the turnover chart with Tk 255.48 million worth of shares traded, followed by Summit Alliance Port, Far East Knitting & Dyeing Industries, Techno Drugs, and Orion Infusion.
Sector-wise, textiles contributed the highest turnover share at 17.8 per cent, followed by pharmaceuticals (14.1 per cent) and banking (12.0 per cent). However, all sectors closed negative, with life insurance (-3.5 per cent), paper (-3.0 per cent), and financial institutions (-2.6 per cent) recording the steepest declines.
The Chittagong Stock Exchange (CSE) also closed in negative territory, with the All Share Price Index (CASPI) losing 138.59 points to 15,199 and the Selective Categories Index (CSCX) dropping 81.04 points to 9,338.
The port city bourse traded 2.10 million shares and mutual fund units with a turnover of Tk 148.82 million.
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