DSEX loses 359 points last week amid Middle East tensions
Over 300 stocks decline during weak trading week
The benchmark index of the Dhaka Stock Exchange (DSE) extended its losing streak last week as escalating geopolitical tensions in the Middle East rattled investor confidence and triggered broad-based selling.
The DSEX shed 359 points, or 6.42%, to close the week at 5,240. The blue-chip DS30 index fell further, losing 157 points, or 7.28%, to settle at 2,011.
Market participation also weakened during the week. Average daily turnover declined 4% to Tk696 crore, reflecting cautious trading as investors avoided large bets amid rising uncertainty. The bearish sentiment wiped out about Tk20,400 crore from the market capitalisation of listed companies.
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The majority of listed securities ended the week in the red. A total of 325 issues declined, while only 59 advanced and eight remained unchanged.
Analysts say the market may remain volatile in the near term as investors closely monitor developments in global energy markets and geopolitical tensions.
According to the weekly market review by EBL Securities Limited, the capital market faced strong bearish sentiment as investors worried about the possible macroeconomic impact of tensions in the Middle East. The brokerage noted that market participants were particularly concerned about potential disruptions to fuel and power supply in Bangladesh if the conflict escalates further.
The review added that the market remained under sustained downward pressure throughout the week in the absence of any clear signs of stability in the Gulf region. The uncertainty prompted aggressive selling across sectors, ultimately snapping the benchmark index's six-week upward streak.
Despite the negative trend, investors remained relatively active in a few sectors. The banking sector accounted for the largest share of turnover at 24%, followed by pharmaceuticals with 15.3% and textiles with 8.5%.
Among individual stocks, Orion Infusion, City Bank, Khan Brothers PP Woven Bag, BRAC Bank and Robi dominated the turnover chart during the week, reflecting concentrated trading in a handful of issues.
Sectoral performance, however, remained largely dismal. The food sector recorded the steepest decline with an average loss of 11.5%, followed by life insurance, which fell 9.1%, and cement, which dropped 8.9%.
A few stocks managed to post strong gains despite the overall downturn. Premier Leasing emerged as the top gainer with a 44.44% rise, while Fareast Finance and FAS Finance both advanced 41.18%.
On the losing side, Rahima Food suffered the sharpest fall, declining 23.90%. Pragati Life Insurance dropped 19.86%, while BAT Bangladesh lost 17.35% during the week.
