Upon conclusion of last week’s trading activities, there was a noticeable dip in indices at the Dhaka Stock Exchange. This downward trend is associated with investors choosing to secure their profits, especially within the banking shares. This trend was signaled by a predominant number of sessions closing at lower marks during the week, with four out of five ending in negative territory.
The influential DSEX index, being the primary faction, recorded a drop of 35 points, finishing the week at 5,408. The DS30, recognised for its blue-chip stocks, mirrored this trend, dropping 17 points to finish the trading week at 2,098.
The shariah-compliant DSES index, recorded a slight dip, decreasing by 0.18 points to arrive at 1,170. Additionally, the DSE SME Index, or DSMEX, experienced a noticeable fall of 41 points, to end the week at 935 points.
Looking at financial statistics, the average turnover for the week also experienced a downslide, reducing by 8.64% to land at Tk911 crore. This contrasts with the previous week’s turnover of Tk998 crore, representing a significant decline.
In terms of overall trading during the week, the turnover stood at Tk3,645 crore, experiencing a decrease from the previous week’s figure of Tk4,194 crore. Despite this decline in trading, there was slight growth in market capitalisation which increased by 0.40% to reach Tk7,15,079.22 crore, versus Tk7,12,223.41 crore from the previous week.
With respect to the 413 issuances traded on the DSE over the week, the activities were mixed. On one hand, a total of 138 issues experienced advancement, while 227 descended. Meanwhile, 30 remained constant, and 18 did not witness any transaction.
As for individual securities, Pragati Life Insurance emerged the strongest in terms of weekly gains. It saw an impressive increase of 19.11% to conclude at Tk123.40. This outperformance was followed by Samata Leather Complex and Malek Spinning Mills, which alighted at Tk82.70 and Tk30.40, posting gains of 14.54% and 14.29% respectively.
Analysts studying the market patterns expressed the opinion that the halt in market rally was not out of place given the preceding surge propelled by enhanced liquidity and rejuvenated investor confidence. Even though banking shares formed the majority of selling activity, some investors retained their faith in blue-chip stocks.
The week started on a promising note as the market entered into a bullish wave. Triggered by favorable negotiations around US tariffs, the market surpassed a 10-month high of 5,500 points.
Despite this encouraging start, the week could not maintain its bullish momentum, and a spree of sell-offs for profit took over. This transition from potential gains to sales affected market stability.
The move to enlist fifteen more state-owned and multinational corporations, in a bid to spike investor sentiment, seems to have been insufficient. The benchmark index encountered a retraction after an eight-week successive streak of gains.
Trading activities in different sectors were unevenly distributed during the week. Predominantly, investors were most active in the banking sector, which constituted 26.6% of the week’s activity. This banking activity was followed by the pharmaceuticals sector and the textile sector, accounting for 12.5% and 9.8% respectively.
Breaking down the performance by sectors, it was observed to be quite divergent. Music to the ears of the life insurance sector was the fact that they recorded the largest increase in shares at a sizeable 5.3%. In contrast, the banking sector took the hardest hit, marking the biggest drop of 3.5%.
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