Stocks extended the losing streak for a seventh consecutive session on Wednesday as jittery investors, facing confidence crisis, continued their relentless sell-offs.
The market witnessed a positive trend in the early trading but failed to maintain the momentum as investors were taking every rebound as an opportunity to exit the market.
After witnessing volatility throughout the session, DSEX, the prime index of Dhaka Stock Exchange (DSE), went down by 14.39 points or 0.23 per cent to settle at 6,138.
In the past seven days after Eid vacation, the DSEX shed more than 228 points, with Tk 160 billion wiped out from the market capitalization.
Two other indices also closed lower. The DS30 index, comprising blue chips, shed 7.15 points to finish at 2,206 and the DSE Shariah Index (DSES) lost 1.80 points to close at 1,346.
Market operators said cautious investors went on a selling binge as they anticipate deepening challenges in the coming months amid ongoing global economic turmoil.
The market has been in doldrums for the past few months since the Russia-Ukraine war began, which was exacerbated by the government's measures to save energy as a safeguard against the global economic instability, said a merchant banker.
"The market outlook remains bleak as investors are concerned about macroeconomic issues such as energy crisis, inflationary pressure and depreciating local currency," he said.
The prolonged bearish sentiment kept investors engaged in continuous sell-off as they anticipate a longer economic challenge ahead on the backdrop of global economic turmoil, said EBL Securities.
According to International leasing Securities, the stocks extended its losing streak for the seventh straight sessions amid confidence crisis.
The June inflation hit a nine-year high of 7.56 per cent that created a negative sentiment among the investors, said the stockbroker.
However, the investors increased their participation significantly in the market as some of the stocks were traded at very lucrative price, said the stockbroker.
Turnover, a crucial indicator of the market, however, jumped 108 per cent to Tk 6.65 billion, up from the previous day's 16-month lowest turnover of Tk 3.19 billion.
The investors' activities were mainly focused on the textile sector, capturing 17.1 per cent of the day's total turnover, followed by miscellaneous (12.5 per cent) and pharmaceuticals (10 per cent).
Major sectors showed mixed performances. Financial institutions saw the highest gain of 0.40 per cent, followed by banking (0.20 per cent), pharma (0.20 per cent) and mutual fund (0.20 per cent).
On the other hand, general insurance lost 1.40 per cent, followed by power (1.10 per cent), telecom (0.40 per cent) and engineering (0.30 per cent).
Out of 381 issues traded, 218 declined, 110 advanced and 53 remained unchanged.
The scam-hit Bangladesh Industrial Finance Company was the top gainer for the second straight day, soaring 8.86 per cent, while IPDC Finance was the worst loser, shedding 2.0 per cent.
The Chittagong Stock Exchange (CSE) also ended marginally lower with the CSE All Share Price Index (CASPI) losing 36 points to settle at 18,030 and the Selective Categories Index (CSCX) shedding 22 points to close at 10,801.
Of the issues traded, 185 declined, 69 advanced and 33 issues remained unchanged on the CSE.
The port city's bourse traded 6.85 million shares and mutual fund units with turnover value worth Tk 164 million.
© 2024 - All Rights with The Financial Express
