The Dhaka Stock Exchange (DSE) observed a halt in its triumphant run of eight consecutive trading sessions as investors commenced profit booking and blue-chip firms revealed less-than-stellar financial outcomes. This shift prompted the DSEX, the key index, to descend by a margin of 37 points to close at 5,355.
The most substantial impact was seen on the leading stocks, with the DS30 index receding by 32 points, leading to a level of 2,058. The shariah index also experienced a drop, albeit minor in comparison, of 8 points wrapping up the day at 1,165.
A decrease of 9.14% was seen in turnover as it settled at Tk865 crore, relatively lower than the previous session’s Tk952 crore, reflecting a slowdown in buying and selling activity. An overview of the trading landscape showed 398 issues exchanging hands, with 117 witnessing advances, 232 registering a fall, and 50 maintaining status quo.
Market insiders and analysts view this slump as a natural correction rather than a sign of a downtrend. They note that this inflection point was anticipated as judicious investors, mindful of the precariousness of the trading arena, seized the moment to crystallize profits.
Even though the market stepped back a bit, the broader landscape delineates a still favourable environment for equity bids. It is suggested that the recent string of gains are primarily due to the comeback of large-cap shares and an upswing in the economy’s overall sentiment.
With the deepening liquidity milieu and the increasing institutional involvement, notably in banking and telecommunications sectors, the market is recuperating steadily. All eyes are riveted on whether the DSEX, now rejuvenating, can consistently tread an upward path and challenge the year’s peak levels in the forthcoming periods.
Despite the slight profit realization, the prevailing market trend suggests probable further gains in the upcoming sessions. Market buffs deem this adjustment as a manifestation of investors cashing on profits following substantial growth, rather than indicative of a dwindling momentum.
Another influencing factor in the ongoing market dynamics is the falling yield on government securities. Market observers stipulate that this falling trend is anticipated to continue, and with a current stock market return rate of around 10.30%, equities are becoming increasingly appealing to the investment community.
Investor optimism has been fortified due to a multitude of macroeconomic factors. The alleviation of concerns pertaining to forex reserves following their recent upturn, the government’s strategy to consolidate weaker banks, the lessening of political ambiguity with the approaching general elections, all have contributed to the some extent to easing investor apprehensions.
Further underpinning investor interest are a number of underpriced corporations, specifically those running a fiscal year ending in June. Such entities are witnessing renewed buyer interest, serving to buoy the capital market index.
The exuberant index of the capital market finally hit the brakes after eight victorious sessions, as investors opted to cash in on the comprehensive upturn in securities pricing. The downturn was primarily driven by blue-chip stocks which significantly weighed down the DS30 index in the day’s trade.
In terms of sector-based allocation, banking stocks led the pack with 24.0% of turnover, closely followed by general insurance and food, capturing 11.7% and 10.8% of the total trading shares respectively. Most sectors concluded on a negative note, with food (-4.7%), cement (-3.7%), and ceramic (-2.4%) sectors experiencing the steepest declines.
The Chittagong Stock Exchange (CSE), acting synchronously with DSE, also witnessed investors pocketing gains. Its Selective Categories’ Index (CSCX) receded by 32.4 points, and the All Share Price Index (CASPI) surrendered 49.6 points, firmly indicating a trend of profit-taking across the trading spectrum.
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