Dhaka Stock Exchange (DSE) indices extended their losing streak today (14 December), as cautious investors remained on the sidelines amid rising concerns over political violence following the announcement of the schedule for the upcoming national parliamentary elections.

Market participants showed a risk-averse stance, opting for profit booking and reduced exposure, particularly in low-cap and junk stocks. The heightened political uncertainty dampened investor confidence, leading to subdued trading activity and persistent selling pressure across most sectors.

The benchmark DSEX index decreased 31 points to close at 4,933. The blue-chip DS30 index declined 12 points to settle at 1,891, while the Shariah-based DSES index shed 6 points to end at 1,028.

The market turnover inched down by 1.51% to Tk457 crore, compared to Tk464 crore in the previous session, reflecting a slowdown in activities in investor participation. Out of 391 traded issues, 79 issues advanced, 249 declined, and 63 remained unchanged.

Analysts say fears of possible disruptions, year-end sell pressure, and uncertainty surrounding the election process prompted investors to take a wait-and-see approach, contributing to the overall market downturn.

During the bearish phase, some investors shifted funds into low-cap, loss-making, non-operational, and junk companies for short-term trading. As a result, these stocks showed higher price volatility, while blue-chip and fundamentally strong companies experienced slower price movements.

Meanwhile, yields on treasury bills and bonds have started to rise again, further weighing on equity market sentiment amid the ongoing bearish trend.

According to market analysts, political uncertainty remains the most crucial issue influencing the stock market. As this uncertainty gradually eases, the market is expected to move in a more positive direction. Due to the current uncertainty, institutional investors and large individual investors have largely stayed away from active participation, which has continued to keep trading volume below its potential level.

They also pointed out that after several consecutive weeks of price declines, the market has entered an oversold territory. As a result, many fundamentally strong stocks are now trading at discounted valuations. Some cautious yet opportunity-driven investors have started taking fresh positions, expecting potential gains in the near future.

Among the top gainers on the day, First Prime Finance Mutual Fund rose by 10%, followed by Bangas (9.95%), Reliance One Mutual Fund (9.55%), VFS Thread (9.32%), and Familytex (8.33%). 

On the losing side, Zeal Bangla Sugar dropped 9.96%, FAS Finance fell 9.87%, Usmania Glass declined 8.96%, Northern Jute lost 8.23% and Shyampur Sugar slipped 7.95%.

Orion Infusion, Orion Infusion, Lovello Ice-Cream, Monno Fabrics, Asiatic Laboratories, and Fine Foods were the most actively traded stocks today, indicating strong investor interest in these counters.

All large-cap sectors posted negative performance. The telecommunication sector recorded the highest loss of 1.87%, followed by non-bank financial institutions (NBFIs) with a decline of 1.56%. The banking sector fell 0.75%, while Fuel & Power shed 0.70% and Engineering declined 0.68%. 

The Food & Allied sector slipped 0.36%, and Pharmaceuticals recorded a marginal loss of 0.22%. Block trades accounted for 3.6% of the total market turnover.

The Chittagong Stock Exchange (CSE) also closed lower, with the CSCX index falling 24 points to 8,526 and the CASPI index declining 25 points to end at 13,846, reflecting bearish sentiment across both major bourses.

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