Dhaka stocks snap rally amid weekly profit-taking
The blue-chip DS30 index dropped by 31 points, or 1.45%, to settle at 2,151, while the shariah-based DSES index also posted losses
The Dhaka Stock Exchange (DSE) ended last week on a downward note as investors booked profits after a sustained rally, pushing the benchmark index down by 90 points or 1.61% to close at 5,523.
Market participation also slowed, with daily average turnover falling by 11% week-on-week to Tk1,149 crore, reflecting a shift in sentiment as traders locked in gains from recently appreciated shares.
According to EBL Securities, the capital market initially opened with bullish momentum supported by robust investor participation. However, caution set in by mid-week, triggering three consecutive sessions of selling pressure as investors offloaded holdings that had rallied in recent weeks. Bargain hunters re-entered the market on the final trading day, lending some support to the index and helping it recover part of the week's earlier losses.
The blue-chip DS30 index dropped by 31 points, or 1.45%, to settle at 2,151, while the shariah-based DSES index also posted losses.
Market breadth tilted negative as 260 issues declined against 102 that advanced, while 35 remained unchanged.
Keep updated, follow The Business Standard's Google news channel
Investor activity was concentrated in the engineering sector, which accounted for 11.4% of turnover, followed by pharmaceuticals at 10.3% and textiles at 10.2%.
Among individual stocks, Robi, Khan Brothers PP Woven Bag, Orion Infusion, BRAC Bank, and Trust Islami Life Insurance emerged as the week's top turnover leaders.
Sectoral performance was largely in the red, with the paper sector leading the losers, shedding by 7.3% of its value.
Trust Islami Life Insurance, which had been among the turnover leaders, also topped the weekly losers' chart with a decline of 20.2%. Other major laggards included Union Bank (down 13%), Intech (down 12.6%), Progressive Life Insurance (down 11%), and Orion Infusion (down 10.9%).
On the other hand, a handful of issues defied the overall trend and posted sharp gains. CAPM BDBL Mutual Fund surged by 24%, followed by Prime Finance (20.8%), S Alam Cold Rolled Steels (20.6%), Alltex (18.8%) and Tamijuddin Textile (16.7%).
The week's losses were not confined to the Dhaka bourse alone. In Chattogram, the CASPI index dropped 1.16% to finish at 15,519 points, while the CSCX index fell 1.26% to 9,528 points, extending the selling pressure to the port city's exchange.
Market analysts say the correction was expected after weeks of steady gains, suggesting the sell-off was primarily profit-driven rather than a fundamental shift in outlook. Still, they note that bargain-hunting in the last session reflected underlying investor confidence, which could provide stability in the coming week depending on liquidity flows and broader economic cues.
