Dhaka stocks remain bearish amid global tensions, energy worries
Market analysts said global instability and fears of a potential energy crisis are key factors influencing investor behaviour.
Ongoing tensions in the Middle East and uncertainty over domestic fuel supply continued to erode investor confidence, keeping the Dhaka stock market on a downward trajectory throughout the week.
Although trading opened on a mildly positive note, the momentum quickly faded as selling pressure intensified. Within a few sessions, major indices slipped, reflecting growing caution among investors.
Midweek, bargain hunters briefly returned to the market, taking advantage of lower prices and triggering a short-lived recovery. However, the rebound failed to sustain due to the absence of strong positive triggers or policy support. By the week's end, selling pressure resumed, leaving the market firmly in bearish territory.
The benchmark DSEX index edged down by 0.86 points to close at 5,257. The blue-chip DS30 fell 12 points to 1,990, while the Shariah-based DSES rose slightly by 3 points to 1,066. The SME index (DSMEX) dropped sharply by 31 points to 1,054.
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Despite weak sentiment, trading activity increased. Average daily turnover rose 22.2% to Tk818 crore, up from Tk670 crore in the previous week. Total weekly turnover stood at Tk3,273 crore across four sessions, slightly lower than Tk3,348 crore a week earlier.
Market capitalisation declined by 0.44% to Tk6,85,632 crore. Of the 411 issues traded, 213 advanced, 142 declined, 35 remained unchanged, and 22 saw no trading activity.
Market analysts said global instability and fears of a potential energy crisis are key factors influencing investor behaviour. Government remarks on stock market restructuring have also prompted many investors to stay on the sidelines, putting the market in a wait-and-see mode.
In its weekly review, the market showed a flat-to-negative trend with volatile movements, reflecting a lack of clear direction. Early in the week, some buying interest emerged in December-closing stocks on expectations of favourable earnings. However, worries over ceasefire negotiations in the Middle East triggered renewed selling pressure.
Subsequent sessions saw intermittent bargain hunting, but gains were limited by cautious selling in large-cap stocks ahead of corporate earnings announcements.
Sector-wise, engineering stocks led turnover with 17.2%, followed by pharmaceuticals (11.6%) and general insurance (10.3%). Performance remained mixed, with ceramic, IT, and general insurance sectors posting gains, while banking, jute, and service sectors declined.
The Chittagong Stock Exchange also ended lower, with the CASPI index falling 0.08% to 14,762 and the CSCX index closing at 9,040.
Analysts remain cautious about near-term market stability unless fuel supply conditions improve, global tensions ease, and clearer policy direction emerges.
