DSEX hits one-year low as sell-off continues

Stocks extended the losing streak for an eighth consecutive day on Thursday, with the key index of the prime bourse hitting a one-year low, as nervous investors continued their sell-offs amid confidence crisis.
The market opened higher and the benchmark equities index soared about 60 points in the first 12 minutes of trading but then started falling, ultimately ending in the red.
DSEX, the prime index of Dhaka Stock Exchange (DSE), went down by 12.27 points or 0.19 per cent to settle at 6,126, the lowest in more than one-year since June 29, 2021.
In the past eight days after Eid vacation, the DSEX shed more than 240 points, with Tk 163 billion wiped out from the market capitalisation.
Two other indices also ended lower. The DS30 index, comprising blue chips, fell 5.24 points to finish at 2,200 and the DSE Shariah Index (DSES) lost 1.16 points to close at 1,345.
Market operators said the bargain hunters wanted to buy lucrative stocks in the early trading, but the jittery investors took it as an opportunity to exit the market, pushing the index lower.
The prolonged bearish sentiment kept cautious investors engaged in continuous sell-offs as they anticipate tough economic challenges ahead, said a merchant banker, seeking anonymity.
"The stocks extended its losing streak for the eight consecutive sessions amid deepening macroeconomic cues," he said.
The foreign currency reserves dropped below $40 billion, hitting a two-year low, while local currency is depreciating against the dollar and June inflation hit a nine-year high to 7.56 per cent, he said.
The market outlook is still bleak as investors are worried about a number of macroeconomic problems, including the energy crisis, inflationary pressure, currency depreciation, an increase in Covid-19 cases, said EBL Securities, in its regular market analysis.
"Pressure on foreign currency reserves, widening current account deficit, rising inflation, and recently arising energy crisis problems are the key macroeconomic issues concerning the investors," said the stockbroker.
International Leasing Securities said the risk-averse investors continued their selling spree on sector-specific issues amid growing macroeconomic worries.
The uncertainty is still growing as the energy crisis, rising inflation, and foreign exchange market volatility are deepening, said the stockbroker.
Turnover, a crucial indicator of the market, stood at Tk 6.76 billion, which was 1.65 per cent higher than the previous day's tally of Tk 6.65 billion.
Major sectors showed mixed performances. The cement sector posted the highest gain of 1.0 per cent, followed by telecom with 0.60 per cent, engineering 0.30 per cent, banking 0.30 per cent and food 0.20 per cent.
On the other hand, power, financial institutions and pharma sectors lost 0.40 per cent, 0.10 per cent and 0.10 per cent respectively.
Losers took a modest lead over the gainers as out of 381 issues traded, 218 declined, 115 advanced and 47 remained unchanged.
S Alam Cold Rolled Steel was the top gainer, soaring 9.90 per cent, while Asia Insurance was the worst loser, shedding 2.0 per cent.
The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index (CASPI) losing 62 points to settle at 17,968 and the Selective Categories Index (CSCX) shedding 37 points to close at 10,764.
Of the issues traded, 159 declined, 75 advanced and 42 issues remained unchanged on the CSE.
The port city's bourse traded 5.81 million shares and mutual fund units with turnover value worth Tk 171 million.

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