In recent times, the Dhaka Stock Exchange demonstrated a somewhat bleak performance as the week concluded, predominantly influenced by prudent investors who decided to secure their gains, especially in the banking portfolios. Out of five trading days, the market tumbled in four, wrapping up the week in loss. The primary index, DSEX, marked a reduction by 35 points, concluding at 5,408.
In addition to DSEX, other significant indices also exhibited negative trends. The DS30, representative of the blue-chip stocks, dipped by 17 points, ending the week at 2,098; while DSES, the index for Shariah-compliant stocks, fell marginally by 0.18 points to 1,170. The DSE Small and Medium Enterprise Index (DSMEX) recorded a decline of 41 points to 935.
The overall turnover for the week suffered a drop as well, witnessing a decrease of about 8.64% to reach Tk911 crore, in contrast with Tk998 crore recorded in the previous week. The total transaction volume was stated at Tk3,645 crore, a downturn from Tk4,194 crore registered the preceding week.
However, amidst the bearish overtones, the market capitalisation reflected marginal growth, increasing by 0.40% to reach a figure of Tk7,15,079.22 crore, up from Tk7,12,223.41 crore the previous week. Within the array of 413 issues that were on offer at the DSE, 138 issues noted an increase, 227 recorded a decrease, 30 closed at par, and 18 weren’t traded at all.
On an individual basis, Pragati Life Insurance was the star performer of the week, leading the gainers with an appreciable 19.11% increase to Tk123.40. The following positions were taken up by Samata Leather Complex, demonstrating a 14.54% increase to Tk82.70, and Malek Spinning Mills, posting a 14.29% increase with closing at Tk30.40.
Market analysts identified this pause as a predictable phenomenon, prompted by a preceding fiery market rally. The rally was primarily supported by a surge in liquidity and a fresh wave of investor optimism. However, the banking stocks appeared to lead the downturn, while selective interest in blue-chip stocks stayed consistent.
The market initiated the week on a positive note, surpassing the 10-month high of 5,500 points. The rise was attributed to the encouraging developments in the United States’ tariff negotiations. Nevertheless, this bullish zeal gradually faded as investors resorted to cashing in on their profits.
Regulation authorities have been striving to enlist fifteen state-owned and international companies, but the much-anticipated investor confidence has yet to be livened up. As a consequence, the prime index DSEX has started to pull back after a successful eight-week growth spree. The banking sector emerged as the most vigorous player, accounting for 26.6% of the week’s total transactions.
In terms of sector performances, the pharmaceuticals industry claimed the second spot, contributing to 12.5% of the traded volume, followed by the textile sector accounting for 9.8%. The performance across different sectors exhibited a mixed trend, with specific sectors making considerable strides while others struggled.
The life insurance sector showcased the most substantial gain among all, marking a stellar rise of 5.3%. On the flip side, the banking sector had a tough week, recording the most substantial loss of 3.5%. Despite the occasional hiccups, the general sentiment stayed optimistic, with investors closely monitoring the market movements for future investment decisions.
The market conditions and the overall investor sentiment are dynamically intertwined. While the investor interest in banking stocks and blue-chip shares remains strong, the future will tell whether their selective interest will drive sustained growth in these sectors.
Many analysts have termed the current slowdown as more of an expected market correction rather than a cause of concern, emphasizing that it could provide a rational transition from a sharp rally to a more sustainable growth mode.
The Dhaka Stock Exchange and its dynamics reflect the trends and fortunes of the broader economy. Market participants, stakeholders, policy regulators, and observers hope that with the right policy directions and robust regulatory mechanisms, the market has the potential to rebound and maintain a trajectory of sustained growth.
The post Dhaka Stock Exchange’s Volatile Week: A closer look appeared first on Real News Now.
About Author
