Dhaka stocks dropped for the fifth consecutive session on Sunday to hit a three-year low, with the turnover hitting a one-month low, as investors decreased their activity and remained cautious to observe the market trend amid a bearish vibe and the ongoing economic uncertainty, market operators said.
DSEX, the key index of the Dhaka Stock Exchange, decreased by 86.13 points, or 1.56 per cent, to close at 5,431.28 points on the day after losing 9.98 points in the previous trading session.
The key index on Sunday posted its lowest after April 27, 2021, when it was at 5,422.38 points.
The key index lost a total of 265.44 points in the past five sessions.
The turnover on the DSE dropped to Tk聽409.18 crore on Sunday, the lowest in one month, while it was Tk聽676.79 crore in the previous trading session.
Before Sunday, the DSE posted its lowest turnover on April 15, 2024 at Tk聽367.53 crore.
Market operators said that the market were continuously falling, as investors were reacting to rising economic worries in the country.
The foreign exchange reserves of the country fell to $13.76 billion, with the gross reserves dropping to $18.26 billion on May 12, marking a 10-year low, according to Bangladesh Bank data.
Market operators said that the Bangladesh Bank鈥檚 decision on increasing repo rates, which might lead to interest rate hikes in the money market impacted negatively on the capital market, as investors might shift funds to banks.
The devaluation of the taka against the US dollar might add to the depressed state of the market, they added.
In the past 13 weeks, the market moved forward in only three weeks.
Market operators also said that multiple other factors were working behind the bearish trend of stocks, such as lack of investor confidence amid economic woes in the country and global geopolitical tensions, liquidity crisis in banks and sudden change of policies.
Of the 388 issues traded on the day, 22 advanced, 347 declined and 19 remained unchanged.
The DSE Shariah index decreased by 20.52 points, or 1.69 per cent, to close at 1,191.63 points on Sunday.
The DS30 index lost 25.55 points, or 1.29 per cent, to finish at 1,948.43 points.
On the sectoral front, pharmaceutical issues exerted the highest turnover, followed by food and mutual fund sector.
EBL Securities in its daily commentary said that the market remained downbeat throughout the session, as investors shied away from taking positions in equities amidst the prolonged subdued market sentiment, which led the majority of scrips to get stuck at the revised lower circuit without having sufficient buyers.
Beach Hatchery topped the turnover chart on the day with its shares worth Tk聽18.94 crore changing hands.
eGeneration, ICB AMCL Sonali Bank Limited 1st Mutual Fund, Orion Infusion, Orion Pharma, Unilever Consumer Care, Taufika Foods and Lovello Ice-cream, Pragati Life Insurance, Sea Pearl Beach Resort & Spa, and Reliance One the first scheme of Reliance Insurance Mutual Fund were the other turnover leaders.