DSEX sheds 97 points last week as energy crisis jitters weigh on sentiment
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) shed 97 points, or 1.65%, to close the week at 5,786. The blue-chip DS30 index followed a similar downward trajectory, falling 30 points to close at 2,162.
The country's premier bourse returned to a bearish phase last week as the benchmark index plummeted by nearly 100 points, driven by acute selling pressure.
A combination of persistent industrial energy shortages and broader macroeconomic concerns triggered a wave of cautiousness, leading investors to offload shares across the board.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) shed 97 points, or 1.65%, to close the week at 5,786. The blue-chip DS30 index followed a similar downward trajectory, falling 30 points to close at 2,162.
The market breadth was overwhelmingly negative, with 314 issues declining against only 52 that advanced, while 18 remained unchanged.
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The fall in share prices wiped Tk3,800 crore from the DSE's total market capitalisation by the end of the week.
Trading activity also saw a contraction, with the daily average turnover dropping by 9.2% to Tk905 crore, down from the previous week's Tk997 crore.
According to EBL Securities' weekly market review, the capital bourse faced persistent downward pressure as investors remained wary of evolving regulatory developments.
The week began with cautious positioning as participants awaited the finalisation of amended margin rules. Although the long-awaited clarification on these regulations was eventually announced, market momentum failed to recover as persistent rumours regarding potentially stringent enforcement measures induced further panic.
"The unresolved national gas crisis has significantly raised concerns over future corporate earnings," EBL Securities noted. "This prompted many investors to reduce their equity exposure, keeping confidence fragile despite a brief late-session rebound toward the end of the week."
Sheltech Brokerage Limited echoed these sentiments, identifying the energy crisis as a primary shaper of market sentiment. The firm noted that even though margin lending rule amendments were finalised midweek, selling pressure persisted.
The pressure was further intensified by media reports suggesting aggressive regulatory action against market manipulators. Although the Bangladesh Securities and Exchange Commission (BSEC) issued a clarification denying such reports, the "surveillance ghost" continued to dominate the trading floor.
Sector-wise, the textile sector remained the most active, accounting for 21.2% of the total weekly turnover, followed by general insurance at 17.9% and the engineering sector at 9.6%.
Performance across almost all sectors was weak. The jute sector suffered the steepest correction, falling 4.6%, followed by paper and printing, which declined 4.5%, and mutual funds, which fell 4.4%.
Services and real estate was the only sector to record a gain, rising a marginal 0.2% during the week.
On the liquidity front, IPDC Finance, Dominage Steel, and Sharp Industries were the top turnover leaders.
In terms of price movement, Envoy Textile led the gainers' list with a 15.8% surge, followed by Al-Arafah Islami Bank and Reliance One Mutual Fund.
On the flip side, Sharp Industries was the week's worst performer, losing 22.1% of its value. Dominage Steel followed with a 21.1% decline, while ML Dyeing fell 15.3%.
The bearish sentiment was mirrored at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) ended 2.04% lower at 9,430 and the All Share Price Index (CASPI) dropped 1.97% to settle at 15,491.
