DSE turnover tumbles 34% amid caution

CSE sees CSCX down 52 points, CASPI falls 68 points

Trading activity at the Dhaka Stock Exchange (DSE) shrank sharply yesterday (4 March) as investors largely stayed on the sidelines following Tuesday’s record-breaking plunge, although the benchmark index managed to stabilise.

The DSEX edged down just 2 points, or 0.03%, to close at 5,323, trimming the massive 218-point fall recorded a day earlier the steepest single-day drop in six years since the Covid-19 pandemic. The blue-chip DS30 shed 4 points, or 0.23%, to settle at 2,045.

Market breadth remained positive, with 227 issues advancing against 112 declining, while 54 remained unchanged. 

However, turnover fell sharply by 34% to Tk582 crore, reflecting subdued participation as investors adopted a cautious stance after recent volatility.

Major index draggers included Grameenphone, BAT Bangladesh, Square Pharma, LafargeHolcim Bangladesh and National Bank, which collectively kept the benchmark under pressure despite gains in smaller stocks.

Market insiders said the bourse appeared to have absorbed the shock from Tuesday’s panic-driven selloff, triggered by fears of an energy supply disruption amid escalating tensions in the Middle East. 

Analysts noted that the moderation in losses suggested investors were reassessing the situation rather than rushing to exit positions.

A managing director of a brokerage firm told The Business Standard that investor confidence improved after the government decided to procure fuel from the spot market to avert a potential energy crisis. 

The move helped calm fears of immediate supply shortages and power disruptions, which had intensified in the previous session.

Yesterday’s trading reflected a pause in panic selling, with many investors staying on the sidelines while some bargain hunters picked up low-priced stocks that had fallen sharply regardless of fundamentals. 

As a result, several loss-making firms dominated the gainers’ list.

Top gainers included Fareast Finance, FAS Finance, Peoples Leasing and Pacific Denims, each rising 10%, while Saif Powertec gained 9.67%.

On the losing side, GSP Finance fell 9.67%, Union Capital dropped 8.82%, Sonargaon Textile declined 8.05%, while Grameenphone and BIFC also posted notable losses.

The cautious sentiment extended to the port city bourse. At the Chittagong Stock Exchange PLC, the CSCX fell 52 points to 9,175 and the CASPI tumbled 68 points to 15,017. 

Turnover there plunged 62% to Tk8.86 crore, reflecting a sharp contraction in trading activity.