Dhaka stocks extend losses last week amid fuel uncertainty
Of the 412 issues traded at DSE, 172 advanced, 206 declined, 12 remained unchanged, and 22 were not traded.
The ongoing Middle East tensions and uncertainty surrounding the country's fuel supply have weighed heavily on the capital market, as weak investor confidence led to a return of downward momentum throughout last week, with broad-based selling pressure across most sectors.
The market remained on a negative trajectory from the very beginning of the week. The index declined in each of the first three trading sessions, further heightening investor concerns. Midweek, some investors engaged in bargain hunting, resulting in a temporary positive movement in the index.
However, the recovery was short-lived, as momentum quickly faded in the absence of strong positive news or policy support.
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By the end of the week, the benchmark DSEX shed 149 points to close at 5,220. The blue-chip DS30 decreased by 86 points to 1,980, while the Shariah-based DSES dropped 20 points to 1,060. The DSE SME Index (DSMEX) rose by 134 points to close at 1,065.
Despite this gloomy week, average turnover increased by 25.78% to Tk668 crore, compared to Tk531 crore in the previous week. Total weekly turnover rose to Tk3,342 crore, up from Tk2,657 crore a week earlier. Market capitalisation decreased by 2.48%, reaching Tk689,399.86 crore, down from Tk706,912.58 crore the previous week.
Of the 412 issues traded at DSE, 172 advanced, 206 declined, 12 remained unchanged, and 22 were not traded.
According to market analysts, global instability and fears of a potential energy crisis are influencing investment decisions. Additionally, comments from the government about restructuring the stock market have prompted a segment of investors to stay on the sidelines.
Meanwhile, remarks by the Bangladesh Bank governor regarding non-bank financial institutions (NBFIs) created fresh volatility in shares of some companies in the sector.
Governor Md Mostakim Rahman recently said the finance ministry would provide the required funds to complete the liquidation process. The statement reinforced expectations that the authorities are moving decisively to wind down several financially weak NBFIs.
Taken together, investors are currently in a wait-and-see mode. Analysts are not optimistic about near-term stability unless there is an improvement in fuel supply, easing of global tensions, or clear policy direction from the government regarding the stock market.
The prolonged decline has also increased frustration among retail investors, many of whom are calling for swift and effective measures to restore confidence in the market.
In its weekly market review, EBL Securities said the capital bourse reverted to its losing streak this week, with investor sentiment weighed down by the ongoing Middle East crisis and prevailing uncertainties over domestic fuel shortages, prompting broad-based sell-offs across the trading board.
The index lost points during the first three sessions of the week, and although a brief bout of bargain hunting provided a temporary rebound, momentum quickly faded in the absence of any decisive positive catalyst.
Investors were primarily active in the pharmaceutical sector, which accounted for 16.6% of total turnover, followed by the engineering sector at 12.4% and the textile sector at 9.8%.
However, most sectors posted negative returns. The travel sector recorded the largest loss at 3.9%, followed by financial institutions at 3.6% and the cement sector at 3.3%, making them the worst-performing sectors of the week.
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