Dhaka stocks sink to three‑month low

• DSEX plunges 164 points amid political uncertainty
• Turnover drops 20 percent as sentiment weakens
• General insurance gains, jute sector tumbles

Shares on the Dhaka Stock Exchange (DSE) closed lower last week as weak investor activity persisted amid political uncertainties, sending the benchmark index to its lowest level since July 16.

The benchmark DSEX index shed 164.3 points, or 3.11 percent, to finish at 5,119.42, according to DSE data. It stood at 5,116.89 points on July 16.

Sentiment was negative across other indices as well, with the DS30, which tracks blue-chip stocks, and the DSES, comprising Shariah-compliant companies, also declining.

"The benchmark index of the capital bourse plunged further to extend its bearish headwinds as investor sentiment weakened amid escalating political uncertainties," said brokerage house EBL Securities in its weekly review.

Turnover stood at Tk 2,611 crore, down from Tk 3,285.63 crore in the previous week, as weak investor sentiment persisted in the face of the market downturn.

Meanwhile, average daily market turnover also declined by 20.5 percent to Tk 522 crore.

Investors were mostly active in the general insurance sector, which accounted for 12.9 percent of the turnover, followed by the pharmaceutical sector at 11.4 percent and the textile sector at 11 percent.

All sectors, except general insurance, which gained 2.4 percent, posted negative returns. The jute sector was the biggest loser, dropping 12.4 percent.

"A deepening lack of confidence triggered a broad-based selling spree throughout the week, overshadowing the continuation of selective buying interest in the general insurance sector," said EBL Securities.

Market breadth was firmly negative, with 326 issues declining, 56 advancing, and 14 remaining unchanged.