Stock market fall as big companies face selling pressure

Stocks ended lower on Monday as selling pressure on select large-cap stocks dragged market indices down.

The DSE's prime index declined by 16.95 points, closing at 4,719.39.

The bearish sentiment in the country’s capital market has intensified, with selling pressure on select large-cap stocks further pulling indices into negative territory, according to EBL Securities.

The blue-chip index DS30, comprising 30 leading companies, dropped by 4.61 points to 1,741.92, while the DSES Index, representing Shariah-compliant companies, fell by 0.76 points to 1,033.32 by the close.

Although the market displayed some resilience during the first hour of trading, it soon reverted to its ongoing downward trend, with most investors remaining cautious amid persistent uncertainty and pessimism. Adding to the drag, several bank stocks underwent corrections due to investor concerns over weak dividend prospects, following the central bank’s tighter regulatory stance, EBL Securities noted.

Turnover, a crucial indicator of market activity, stood at Tk 2.83 billion, up 20 per cent from the previous trading session.

The majority of stocks experienced price declines. Of the 393 issues traded, 148 advanced, 168 declined, and 77 remained unchanged on the DSE trading floor.

Square Pharmaceuticals Limited was the most-traded stock, with shares worth Tk 112.71 million changing hands, followed by Baraka Patenga Power, BRAC Bank, Shinepukur Ceramics Limited, and Midland Bank PLC.

The Chittagong Stock Exchange (CSE) also ended lower, with its All Share Price Index (CASPI) dropping 52.8 points to settle at 13,267 and the Selective Categories Index (CSCX) falling 35.58 points to 8,105.

The port city bourse traded 4.67 million shares and mutual fund units, with a turnover of Tk 117.34 million.