Stocks slide last week as geopolitical, domestic worries weigh on DSE
The benchmark DSEX index dropped 34 points over the week to close at 5,860, while the blue-chip DS30 index fell 25 points to settle at 2,191.
Stocks on the Dhaka bourse fell last week as persistent domestic and geopolitical uncertainties continued to weigh on investor sentiment, triggering broad-based selling despite a recent cut in the central bank's policy rate.
The benchmark DSEX index dropped 34 points over the week to close at 5,860, while the blue-chip DS30 index fell 25 points to settle at 2,191. Of the issues traded, 188 advanced, 179 declined and 22 remained unchanged.
Despite the weak index performance, trading activity picked up. The average daily turnover rose 11.50% week-on-week to Tk1,181 crore, indicating that investors remained active even as risk appetite weakened.
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According to EBL Securities, the market started the week on a subdued note as the DSEX struggled to sustain its position above the 5,900-point level. The central bank's first policy rate cut in nearly two years failed to ease prevailing concerns among investors.
Selling pressure intensified amid continued energy shortages and tensions in the Middle East. The uncertainties kept the market largely range-bound despite monetary easing and government measures aimed at addressing the fuel crisis.
Bargain hunters briefly returned to momentum-driven and insurance stocks, helping the market recover some of its earlier losses. However, the rebound lacked enough strength to sustain the broader market.
Renewed buying interest in mutual funds also emerged following the regulator's guidelines on mutual fund conversion. Still, cautious investors remained largely on the sidelines towards the end of the week, with profit-taking and subdued risk appetite outweighing selective buying.
Sector-wise, textile stocks dominated turnover, accounting for 22.1% of total weekly turnover, followed by general insurance at 14% and pharmaceuticals at 11.5%.
Mutual funds posted the highest sectoral gain, rising 4.9%, followed by general insurance and life insurance, which gained 3% and 2.9%, respectively. In contrast, food stocks declined 2.8%, ceramics fell 1.6% and cement dropped 1.3%.
Fareast Finance led the weekly gainers, surging 31.6%, followed by Tung Hai Knitting at 28.6%, GBB Power at 27.7%, International Leasing at 25% and FAS Finance at 20.8%.
S Alam Cold Rolled Steels was the biggest loser, declining 9.3%, followed by Sena Insurance, Apex Spinning, Orion Infusion and Argon Denim, which fell 8.8%, 7.6%, 7.4% and 7%, respectively.
