Market cap sheds Tk2,222cr on US tariff shock

The market capitalisation of the country's capital bourse dropped by around Tk2,222 crore last week amid concerns over US tariff impositions, as stocks saw sell-offs in specific sectors.

On 2 April, US President Donald Trump announced reciprocal tariffs on countries across the globe, including 37% on Bangladesh and 26% on India. But later, the implementation of imposed tariffs paused for 90 days, except for China.

According to the weekly report of the Dhaka Stock Exchange (DSE), market capitalisation was at Tk6.74 lakh crore at the beginning of the week and declined to Tk6.72 lakh crore by the end of the week, marking a 0.33% drop.

While DSEX, the benchmark index of the DSE, declined by 14 points to 5,205 points, the other two indices — DSES and DS30 – managed to end in the green territory with 4.85 points and 13.21 points, respectively.

However, the average turnover at the DSE surged by 19.79% to Tk487.27 crore compared to the previous week, as trading continued for five days last week compared to four days in the previous one.

The DSE data showed that out of five trading sessions of the week during 6–10 April, after the imposition of US tariffs, the first three trading sessions witnessed huge sell-offs, but in the fourth sessions, stocks rebounded riding on large and mid-cap gains. 

Meanwhile, most of the stock's price declined amid sell-offs with 235 declined, 141 advanced and 19 stocks price remained unchanged, the DSE report showed.

A category stocks leads gainer chart

According to the DSE report, A category stocks — which paid over 10% dividends — led the top gainers' chart last week, with nine out of the top ten being from this category.

Heidelberg Cement topped the gainer chart as its share price surged 27.61% from Tk214.40 to Tk273.60 each, followed by IFIC First Mutual Fund by 23.53%, AB Bank First Mutual Fund by 20%, Eastern Lubricant by 18%, and LG Global Mutual Fund by 17.14%.

Meanwhile, the B and Z Category stocks topped the loser list. Of the losers, three were Z category stocks, non-compliant and did not pay dividends, five were B category stocks, who pay dividends below 10%, and one was A category stock.

Newline Clothing's shares price lost 15.46%, followed by S Alam Cold Rolled Steels, Sonargaon Textile, Beach Hatchery and Fu-Wang Foods.

EBL Securities in its weekly market commentary said, the benchmark index of the capital bourse ended in red territory this week as the US tariff shock spilled concerns over an uncertain market momentum, although a slight recovery in the final two sessions reflected some easing of investor anxiety, supported by investors' firm positions in certain mid to large-cap scrips and the recently declared 90-day pause in US reciprocal tariffs.

"Moreover, the anticipated extension of the banks' special fund for stock investment until Dec 2026 also somewhat helped calm investor concerns over the market's momentum.

"However, cautious investors opted to maintain a watchful stance amid the market's weakened trend and ahead of the upcoming earnings disclosures from listed companies," it added.