Stocks end flat as pre-budget caution dampens trading activity

Stocks closed nearly flat on Wednesday as investors adopted a cautious stance ahead of the national budget announcement, with profit-taking in recently gained stocks offsetting selective buying in fundamentally attractive issues.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) slipped marginally by 2.7 points to close at 5,517, compared with 5,519 in the previous session.

Although bargain hunters initially pushed the market into positive territory, increased selling pressure during the latter half of trading erased early gains and dragged the market into negative territory.

Market participation weakened as turnover declined by 12.8 percent to Tk 1210 crore, down from Tk 1380 crore in the previous session, reflecting investors’ wait-and-see approach ahead of key fiscal policy announcements.

Among sectors, General Insurance dominated turnover, accounting for 19.4 percent of total transactions, followed by Engineering (12.4 percent) and Textile (11.7 percent).

Sector-wise performance remained mixed.

Ceramic stocks led the gainers with a 3.5 percent rise, followed by Services (2.7 percent) and Mutual Funds (2.0 percent).

On the downside, the miscellaneous sector suffered the sharpest correction, declining 4.2 percent, while Paper and Financial Institutions lost 2.0 percent and 1.2 percent, respectively.

Out of the 396 issues traded, 144 advanced, 178 declined, and 74 remained unchanged, indicating a broadly negative market breadth despite the benchmark’s marginal movement.

The Chittagong Stock Exchange (CSE) also ended lower, with the CSCX index falling 44.6 points and the CASPI declining 73.5 points, mirroring the cautious sentiment prevailing in the capital market.