Banking sector pulls DSEX down at week's start
DSEX falls 58 points to settle at 4,939
The Dhaka Stock Exchange (DSE) suffered a sharp setback on Sunday as heavy selling in banking stocks dragged the key index lower, reversing recent gains and dampening investor sentiment at the start of the trading week.
The downturn was broad-based, with all major large-cap sectors closing in the red, but losses in banks played the most decisive role in pulling the market down.
The benchmark DSEX index fell by 58 points, or 1.17%, to settle at 4,939, while the blue-chip DS30 index dropped 18 points, or 0.97%, to close at 1,896.
Market breadth was heavily skewed toward decliners, with 313 stocks ending lower against just 38 advancers, as selling pressure intensified across the board.
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Turnover also slipped to Tk412 crore, reflecting cautious trading activity, while overall market capitalisation shrank by around Tk2,000 crore in a single session.
Banking stocks were at the centre of the sell-off, with the sector shedding 1.77% on the day.
Market participants said the decline was largely driven by short-term investors locking in profits after a strong rally in recent weeks.
Over the past three weeks, the banking sector's market capitalisation had surged by nearly 8%, or about Tk5,000 crore, raising concerns of overbought conditions. As profit-taking set in, most banking shares came under pressure, erasing a portion of those gains.
Out of the 36 banks listed on the DSE, share prices of 27 lenders declined, while the remaining nine ended the session unchanged. The selling spree in banks weighed heavily on overall market sentiment, given the sector's significant weight in the indices and its role as a bellwether for the broader market.
Market analysts said the near-term direction of the market will largely depend on whether banking stocks stabilise after the recent correction. While fundamentals of some large banks remain relatively strong, investors are likely to stay cautious in the coming sessions, closely watching sector-specific developments and broader economic signals before rebuilding positions.
Losses were not limited to banks. Non-bank financial institutions experienced the steepest sectoral decline, dropping 1.95%, amid lingering concerns over asset quality, regulatory actions and the financial health of weaker players.
Engineering stocks fell 1.16%, while telecommunications declined 0.93% and pharmaceuticals slid 0.91%. Fuel and power shares lost 0.66%, and food and allied industries slipped 0.36%, highlighting the extent of the market-wide pullback.
Trading activity was concentrated in a handful of stocks, with Orion Infusion, Dominage Steel, City Bank, Square Pharmaceuticals and Uttara Bank emerging as the top turnover leaders.
Despite the weak overall market, a few stocks managed to post gains. First Finance topped the gainers' list, while Shinepukur Ceramics, Familytex BD, Zaheen Spinning and Union Capital also closed higher.
On the flip side, several troubled non-bank financial institutions, already under liquidation threat, dominated the list of top losers. Shares of Fareast Finance and International Leasing suffered steep declines, reflecting heightened investor anxiety following recent regulatory signals and concerns over the future of non-viable institutions.
The bearish mood extended to the Chittagong Stock Exchange (CSE) as well. The CSCX index fell by 73 points, or 0.84%, to 8,579, while the CASPI index dropped 116 points, or 0.83%, to close at 13,877. Turnover at the port city bourse plunged sharply to Tk4.03 crore, underscoring the subdued trading environment.
