Dhaka stocks edge lower amid energy crisis worries

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Dhaka stocks edge lower amid energy crisis worries

Dhaka’s stock market ended marginally lower on Tuesday as investors remained cautious amid continuing concerns over the nationwide gas and electricity shortages.

The uncertainty kept trading volatile and weakened hopes for a near-term market rebound.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), declined 3.5 points to close at 5,640, compared with 5,644 in the previous trading session.

The market fluctuated throughout the day. Buying interest from bargain hunters pushed prices higher during the early and mid-session, but the momentum failed to hold. A wave of selling across a broad range of stocks in the final hour dragged the index back into negative territory.

Investor participation also weakened considerably, with daily turnover falling 15.8 percent to Tk 5.1 billion from Tk 6.9 billion a day earlier. The figure marked the lowest turnover recorded in roughly five months.

Textile companies dominated trading activity, generating 25.3 percent of total turnover. Banking stocks followed with a 13.7 percent share, while general insurance accounted for 10.1 percent.

Performance across sectors was uneven. Fuel stocks posted the strongest gain of 0.6 percent, followed by paper at 0.4 percent and cement at 0.3 percent. Ceramic stocks recorded the steepest decline, falling 0.8 percent, while jute and life insurance stocks dropped 0.6 percent and 0.5 percent respectively.

Of the 395 securities traded on the DSE, 171 gained, 150 lost ground and 74 closed unchanged, indicating a relatively balanced market despite the marginal decline in the benchmark index.

The Chittagong Stock Exchange (CSE) also closed lower. The CSCX index shed 49.9 points, while the CASPI index lost 93.9 points.

Market observers said persistent energy supply disruptions and uncertainty over the near-term economic outlook continued to discourage aggressive investment, keeping investors focused on short-term opportunities rather than taking larger positions.

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