Stocks extend losing streak amid cautious investor sentiment

The country’s capital market on Wednesday extended its downward trajectory for a second consecutive session as cautious investor sentiment, coupled with volatility in major stocks and post-dividend adjustments in select banking issues, continued to weigh on overall market performance.

At the Dhaka Stock Exchange (DSE), the benchmark DSEX index fell by 18.9 points to close at 5,248, down from 5,267 in the previous trading session, reports BSS.

Market analysts said persistent selling pressure in large-cap stocks led to broad-based corrections as the session progressed.

Investors remained largely watchful, keeping a close eye on both domestic market developments and international factors, including ongoing ceasefire negotiations in the Middle East, which added to the prevailing uncertainty and subdued trading activity.

Market turnover also declined by 7.8 percent to taka 7.6 billion from Taka 8.3 billion in the previous session, indicating reduced participation amid the cautious stance of investors.

On the sectorial front, Textile dominated turnover with a 15.5 percent share, followed by Pharmaceuticals at 14.5 percent and Engineering at 14.1 percent. Sector performance was mixed during the session. Textile, Ceramic and Miscellaneous sectors registered gains of 1.5 percent, 1.3 percent and 0.1 percent respectively.

In contrast, Financial Institutions, Life Insurance and General Insurance sectors experienced notable corrections, declining by 1.4 percent, 1.4 percent and 1.3 percent respectively. Out of the 396 issues traded on the DSE, 107 advanced, 212 declined and 77 remained unchanged, reflecting a broadly negative market breadth.

Meanwhile, the port city bourse, Chittagong Stock Exchange, also ended in the red. The Selective Categories Index (CSCX) edged down by 0.4 points, while the All Share Price Index (CASPI) declined by 14.0 points, mirroring the downbeat sentiment observed in the capital market.