Stocks end lower amid choppy trading
Stocks ended lower on Sunday amid choppy trading as uncertainty over proposed margin rules and renewed geopolitical tensions weighed on sentiment.
The benchmark DSEX index of the Dhaka Stock Exchange dropped 19.93 points, or 0.34 per cent, to close at 5,784.39.
Market analysts said the recent rally encouraged many short-term investors to book profits, while uncertainty surrounding the proposed changes to the margin loan rules further dampened market sentiment.
Investor sentiment was further dampened by escalating tensions in the Middle East, prompting broader risk aversion across financial markets.
Analysts said investors are closely monitoring both domestic policy developments and the evolving situation in the Middle East, which continue to influence risk appetite in the market.
The DS30 index, comprising leading blue-chip companies, decreased 5.75 points to 2,186, while the DSES index, which tracks Shariah-based stocks, decreased 5.76 points to 1,199.
The market remained volatile throughout the day, with investors actively trading on both the buy and sell sides. However, late-session selling pressure in several large-cap stocks pushed the benchmark index further into negative territory before the close.
Insurance stocks, meanwhile, attracted renewed buying interest after a series of strong corporate earnings announcements, leading to selective accumulation across the sector according to EBL Securities.
Market participation declined on Wednesday, with turnover on the Dhaka Stock Exchange (DSE) decreasing to Tk 7.81 billion from Tk 9.39 billion in the previous session.
Losers outnumbered Gainers on the DSE floor. Of the 389 issues traded, 116 closed higher, and 240 ended lower, while 33 remained unchanged.
Sector-wise, textiles dominated turnover with a 19.2 per cent share, followed by general insurance at 11.0 per cent and pharmaceuticals at 10.4 per cent.
Most sectors ended in the red, with mutual funds losing 2.2 per cent, ceramics falling 2.0 per cent and financial institutions declining 1.5 per cent. In contrast, general insurance gained 2.9 per cent, while services and food sectors advanced 0.6 per cent and 0.2 per cent, respectively.
The Chittagong Stock Exchange also ended lower, with its All Shares Price Index (CASPI) decreasing 142 points to 15478 while the Selective Categories Index (CSCX) decreased 92 points to 9445.
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