DSEX edges up after four-day losing streak

Infographic: TBS

The benchmark index of the Dhaka Stock Exchange rebounded slightly today (22 February), ending a four-session losing streak that began after the national election. 

The DSEX, the bourse's main index, inched up by 2 points to close at 5,468. The modest gain came after sustained selling pressure in the previous four sessions, during which the index had fallen sharply amid post-election uncertainty and cautious investor sentiment.

The blue-chip DS30 index, which tracks 30 leading companies, performed relatively better, rising 6 points to settle at 2,104. The increase indicates selective buying interest in large-cap stocks, particularly those with strong fundamentals. In contrast, the Shariah-based DSES index slipped slightly by 0.30 points to close at 1,095, reflecting mixed performance among Shariah-compliant securities.

Market analysts attributed the modest recovery in the DSEX to bargain hunting by investors after consecutive declines. However, overall market movement remained subdued, signaling ongoing caution. Investors are carefully monitoring political developments and economic signals before taking significant positions.

Turnover on the Dhaka Stock Exchange rose by 1.43% to Tk568 crore, up from Tk560 crore in the previous session. Despite the slight rebound, both turnover and participation remained moderate, indicating that investor confidence has yet to fully recover.

Of the 388 issues traded during the session, 123 advanced, 194 declined, and 71 remained unchanged, showing a continued dominance of losing stocks. Analysts noted that the cautious sentiment reflects investor concerns over the post-election political and economic landscape.

Many investors preferred to remain on the sidelines, waiting for clearer signals regarding policy direction and the formation of a new securities commission. Uncertainty over regulatory leadership and upcoming reforms has also weighed on market sentiment.

Institutional investors appeared particularly hesitant to take fresh positions without greater clarity on policy continuity and market stabilization measures. Over the past year, prolonged political uncertainty and a series of regulatory decisions that failed to restore investor confidence have contributed to a sustained market downturn. 

Retail investors exited the market in significant numbers, while institutional and high-net-worth investors largely remained inactive, causing the share prices of several fundamentally strong companies to decline.

Large-cap sectors displayed mixed performance today. The banking sector led the gains, rising 0.91%, followed by non-bank financial institutions (NBFIs) with a 0.59% increase. The Food & Allied sector gained 0.15%, and Telecommunication edged up 0.08%.

In contrast, Fuel and Power fell 0.27%, Engineering declined 0.32%, and Pharmaceuticals dropped 0.73%. Block trades contributed 2.9% of the overall market turnover, highlighting selective large-volume transactions amid cautious trading.

Overall, Sunday's slight recovery offers limited relief, and the market remains sensitive to political developments, regulatory clarity, and macroeconomic updates. Investors are likely to continue taking a cautious approach in the coming sessions until more stable conditions emerge.

The Chittagong Stock Exchange (CSE) also closed lower, as the CSCX index down 16 points to 9,413, while the CASPI index shed 47 points to close at 15,302, reflecting negative sentiment across both bourses.